Federal Government Urged To Implement Tough Modern Slavery Laws
The Federal Government has been urged to implement tough new penalties to Australian companies who refuse to address modern slavery within their supply chains.
In a significant move aimed at enhancing corporate responsibility and accountability, the Federal Government is considering lowering the reporting threshold for companies with an annual revenue of $100 million to $50m - and enforcing penalties for companies who do not comply.
This means all Australian companies with an annual revenue of $50 million or more will need to submit a modern slavery statement each year, including the actions they have taken to address risks in their operations and supply chain.
Modern slavery expert Nicholas Bernhardt, Informed 365 CEO, (pictured) estimated the lowering of the threshold to $50 million could affect as many as 2,500 Australian companies, signalling a significant expansion in the scope of businesses required to report on Modern Slavery.
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Informed 365 develops Australian Modern Slavery Act Australia Compliance, Supply Chain Transparency, Climate Risk Adaptation and CSR Certification.
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“The government needs to move now. There are no penalties for Australian companies who do not adequately address the fact modern slavery could exist within their supply chains.
“This move would significantly drive change, as well as lowering the threshold so more companies are accountable,” he said.
“Modern slavery remains a pervasive concern in various sectors and supply chains, often involving lower-skilled labour, casual and manual labour, migrant labour and short-term workforces.”
Mr Bernhardt works with more than 300 clients, including Lendlease, Stockland, Mirvac, Ausgrid, Treasury Wine Estates, Coles, Sydney Water, Flight Centre and Jemena.
He estimates about 40,000 slaves are working in Australia, in many industries including cleaning and security, the manufacture of PPE (masks, gloves), agricultural labour (fruit picking, packing, and distribution), construction trades like plastering or painting, garment and clothing production and roles where people may be 'unseen.’
Earlier this year, the Federal Government tabled a report recommending the key reforms to the Modern Slavery Act to align with international regulatory trends for enhanced human rights due diligence, supply chain transparency and penalties to support corporate accountability.
And in June, the Federal Government pledged to introduce an Anti-Slavery Commissioner, plus implement all recommendations in the report - including penalties for non-compliance.
Mr Bernhardt said as well, the Attorney-General's announcement as part of the Federal Government’s FY24 Budget also noted the introduction of penalties for non-compliance with the Act as part of its broader modern slavery programme (alongside establishing an Anti-Slavery Commissioner, as noted above).
Key recommendations in the report include reducing the reporting threshold from $100 to $50 million, and, significantly, the introduction of penalties for failing to report, having a misleading report or failing to have a due diligence system.
“In order to drive awareness, it is essential that all businesses start seeing good corporate behaviour as business as usual,” Mr Bernhardt, a former investment banker, said.
“The Modern Slavery Act is the first of many ESG related laws that will be introduced nationally and internationally in the coming years.”
Informed 365 is an Australian-based global ESG tech company specialising in date transparency and efficiency enhancement and offers a streamlined approach to assist reporting entities.
"Informed 365 can make the data gathering, supplier engagement, and reporting much more efficient,” Mr Bernhardt said.
“We are world leaders in our consortium approach, working with entire industries to combat modern slavery collectively, which typically yields a more substantial impact than individual efforts.”
About 300 Australian businesses use Informed 365's services, showing a growing awareness among companies regarding the need to address modern slavery within their supply chains.
Modern slavery is just one aspect of the broader Environmental, Social, and Governance (ESG) framework, representing an interconnected web of concerns encompassing human rights, labour, governance, community, climate risk, the environment, fair operating practices, and consumer issues.
Organisations are encouraged to consider the holistic picture of ESG as they strive to be responsible corporate citizens.
About Informed 365: Informed 365 is an Australian-based global ESG tech company that provides data transparency and drives efficiency by collecting, analysing and reporting through advanced technology and automation. Key applications include Modern Slavery / Ethical Sourcing and ESG Business Intelligence platforms. For more information, please visit www.informed365.com.
