AICD submission on strengthening the Modern Slavery Act 2018

The AICD supported many of the proposed reforms to the Act in principle, particularly measures that provide clarity, strengthen enforcement in a proportionate way, and reduce unnecessary administrative constraints.

We highlighted that reforms must avoid excessive compliance burdens that distract board attention, particularly given the Government’s broader productivity agenda. Importantly, proposals should be directed towards improving the quality of disclosures, so that reporting meaningfully enhances transparency and supports better governance outcomes.

Where possible, we encouraged harmonisation of reporting obligations across jurisdictions, noting many Australian entities are already subject to varying international requirements.

We also encouraged the Anti-Slavery Commissioner to focus on targeted education and tailored guidance to support modern slavery reporting more broadly, particularly for NFPs and SMEs.

We provided the following comments on key areas:

• Clarification of reporting criteria:  We supported clarifying reporting criteria on identifying modern slavery risks and describing due diligence actions to assist improve consistency and reinforce best practice.
• Grievance mechanism:  We supported reporting on the existence of grievance mechanisms, limited to an entity’s process. We did not support mandatory reporting on the use of grievance mechanisms (e.g. complaints lodged).
• Reporting on remediation:  We did not support including remediation as a separate mandatory reporting criterion. Requiring disclosure of processes and actions could compromise victim privacy, ongoing investigations, or criminal proceedings, and may expose entities and employees to legal liability where allegations are contested.
• Regulatory oversight:  We supported an independent body to oversee enforcement, with judicial exclusivity in the application of penalties and enforcement powers for failure to comply with the Act.
• Enforcement measures and broader information gathering powers for the regulator:  We supported the introduction of enforceable undertakings and broader information-gathering powers. We noted that enforcement responses should be proportionate to the size and capacity of the business.

Greater flexibility for corporate groups: We supported efforts to enhance clarity and accountability in corporate group reporting under the Act. We recommended greater flexibility for corporate groups to determine their reporting approach internally, based on their governance structures.

The AICD emphasises the need for a mix of practical and ambitious reforms to address Australia's long-term productivity challenges and enhance global competitiveness.