Quick Answer
What do businesses need to know about the Modern Slavery Act? The Modern Slavery Act 2018 (Cth) requires entities based or operating in Australia with annual consolidated revenue of at least $100 million to lodge a modern slavery statement each year. The statement must address 7 mandatory criteria, including the risks in their operations and supply chains and the actions taken to address them, and is published on a public register. Smaller businesses are often asked for the same information by their customers.
In this guide
Modern slavery is a global issue that must be stopped at all costs. It exploits human lives and weakens economies. It includes debt bondage, child labour, trafficking, deceptive recruiting, servitude, slavery, and forced marriage. Many nations across the globe have their own and international legislation in place to prevent and deal with modern slavery incidences.
For businesses operating in Australia, the Modern Slavery Act 2018 (Cth) (Commonwealth Act) was passed in 2018 and commenced on 1 January 2019. It requires larger companies in Australia to follow certain standards for modern slavery reporting.
If you run a business in Australia, it helps to understand what the Act requires, whether it applies to you directly and what your large customers may ask of you. We have listed a few things that need to be considered.
Some useful statistics
- About 50 million people were living in modern slavery on any given day in 2021 (ILO, Walk Free and IOM)
- Forced labour generates about US$236 billion in illegal profits each year (ILO, 2024)
- Around 29 million people in modern slavery are in Asia and the Pacific, the largest number of any region
- Walk Free estimates around 41,000 people were living in modern slavery in Australia in 2021
- For every victim detected in Australia, about four go undetected (Australian Institute of Criminology)
What Do Businesses in Australia Need to Know About Modern Slavery Act 2018
1. What is an Australian entity?
Broadly, an Australian entity is any company, trust, corporation, partnership, or other entity that is resident in Australia as per respective subsections and divisions of the Income Tax Assessment Act 1936 and/or carries on business in Australia.
2. Who needs to report?
Australian entities carrying on business in Australia having a minimum consolidated revenue of $100 million need to report as per the Commonwealth Modern Slavery Act 2018.
Requirements do change. The Modern Slavery Act 2018 (NSW), for example, was amended and commenced on 1 January 2022, and now applies mainly to NSW government agencies and their suppliers.
3. What does reporting require?
The reporting entities must perform risk assessments in their operations and supply chains and that of the other entities owned and/or controlled by them. The report is also supposed to include the steps taken to respond to the identified risks. The reporting criteria in Australia are mandatory.
The 7 mandatory reporting criteria
Every modern slavery statement must address all seven criteria in the Act:
| Mandatory criterion | What your statement must cover |
|---|---|
| 1. Identify the reporting entity | Name the entity (or entities) the statement covers |
| 2. Structure, operations and supply chains | Describe how the business is set up, what it does and where it buys from |
| 3. Modern slavery risks | Describe the risks in your operations and supply chains, and in entities you own or control |
| 4. Actions taken | Describe how you assess and address those risks, including due diligence and remediation |
| 5. Effectiveness | Explain how you assess whether those actions are working |
| 6. Consultation | Describe how you consulted the entities you own or control |
| 7. Other relevant information | Anything else that helps readers understand your response |
The statement must be approved by the board (or equivalent), signed by a responsible member and lodged on the Online Register for Modern Slavery Statements. Training staff is one of the most common actions entities report. See why modern slavery training is required in Australian businesses for more on that.
4. What is the time limit for reporting?
Generally, the reporting entities are required to submit the modern slavery statement within 6 months after its financial year. They must lodge their approved statement on the Online Register for Modern Slavery Statements, administered by the Attorney-General’s Department, where it is published. Check the register guidance each year for any changes.
5. What must businesses do to comply with the Modern Slavery Act 2018?
All reporting entities must begin reviewing their operations and supply chains to comply with new obligations. The important tasks include:
- Design and implement an appropriate modern slavery management framework
- Assess the modern slavery risks in the business supply chain and operations
- Mitigate the identified modern slavery risks by adopting strategies
- Remediate by developing and implementing appropriate measures
- Monitor and review the effectiveness of modern slavery risk management framework, activities, and processes
- Report and establish an appropriate mechanism for both internal and external reporting.
FAQs
1. What is the Modern Slavery Act 2018?
The Modern Slavery Act 2018 (Cth) requires large entities based or operating in Australia to report each year on the risks of modern slavery in their operations and supply chains, and on the actions they take to address those risks. It commenced on 1 January 2019.
2. Who has to report under the Modern Slavery Act?
Entities based or operating in Australia with annual consolidated revenue of at least $100 million must lodge a modern slavery statement each year. Smaller entities can report voluntarily, and many are asked for the same information by their large customers.
3. When is a modern slavery statement due?
Generally within 6 months after the end of the entity’s financial year. Statements are lodged on the Online Register for Modern Slavery Statements, where they are publicly available.
4. Are there penalties for not reporting?
The Act currently has no financial penalties. The Minister can ask an entity to explain a failure to report or to take remedial action, and can publicly name entities that do not comply. A 2023 statutory review recommended introducing penalties, so check the latest position.
5. How is the NSW Modern Slavery Act different?
The NSW Modern Slavery Act 2018 commenced on 1 January 2022 and mainly applies to NSW government agencies, local councils and the businesses that supply them. Private businesses report under the Commonwealth Act instead.
Conclusion
The Modern Slavery Act 2018 was implemented to help businesses operating in Australia clearly define the behaviour and practices that constitute modern slavery, report it, and mitigate future risks. Companies are required to comply with this act and help society overcome human rights violations in the form of slavery. Sentrient’s modern slavery and human rights awareness course can help businesses spread more awareness in their workplace.
Contact us today to let us help you increase employee awareness to prevent modern slavery in your workplace or supply chain.
Sources
Federal Register of Legislation: Modern Slavery Act 2018 (Cth)
Attorney-General’s Department: Modern Slavery Act
ILO: Annual profits from forced labour amount to US$236 billion (2024)
Walk Free: Global Slavery Index, Australia country study
NSW Legislation: Modern Slavery Act 2018 (NSW)
Last reviewed: October 2026
