Linda Reynolds (WA, Liberal Party, Assistant Minister for Home Affairs) Share this | Hansard source

I table a supplementary explanatory memorandum relating to the government's amendments moved to this bill. Senator Griff said he was disappointed that we don't have a list yet. I just wanted to explain to him and to senators in this chamber that that is quite correct, because a list simply does not yet exist. However, the government is working towards a list, which is going to be based on the ATO list of companies with revenue of over $100 million, and that will be the basis for the list moving forward. I seek leave to move government amendments (1) to (8) on sheet ET100 together.

Leave granted.

I move:

(1) Clause 11, page 10 (after line 13), at the end of the clause, add:

The Minister may request an explanation from an entity about the entity's failure to comply with a requirement in relation to modern slavery statements, and may also request that the entity undertake remedial action in relation to that requirement. If the entity fails to comply with the request, the Minister may publish information about the failure to comply on the register or elsewhere, including the identity of the entity.

(2) Page 13 (after line 27), at the end of Part 2, add:

16A Explanations for failure to comply etc.

Request for explanation or remedial action

(1) If the Minister is reasonably satisfied that an entity has failed to comply with a requirement under section 13 or 14 (which deal with requirements to give modern slavery statements), the Minister may give a written request to the entity to do either or both of the following:

(a) provide an explanation for the failure to comply within a specified period of 28 days or longer after the request is given;

(b) undertake specified remedial action in relation to that requirement in accordance with the request within a specified period of 28 days or longer after the request is given.

Example: For a request relating to a failure to give a modern slavery statement to the Minister within the period required by section 13, remedial action specified under paragraph (b) of this subsection may be to give a modern slavery statement to the Minister within a further period specified in the request.

(2) The Minister may extend, or further extend, a period specified in a request under subsection (1) by written notice given to the entity. The extension may be given before or after the end of the specified period (or that period as previously extended).

(3) A request under subsection (1) must include a statement of the effect of subsections (2) and (4) to (6).

Publication of information about failure to comply with request

(4) If the Minister is reasonably satisfied that an entity has failed to comply with a request under subsection (1), the Minister may publish the following information on the register, or in any other way the Minister considers appropriate:

(a) the identity of the entity;

(b) if the request relates to the entity's failure to comply with subsection 14(2) (joint modern slavery statements) in relation to a modern slavery statement—the identities of the reporting entities covered by the statement;

(c) the date the request was given, and details of any extension given under subsection (2);

(d) details of the explanation or remedial action requested, and the period or periods specified in the request;

(e) the reasons why the Minister is satisfied that the entity has failed to comply with the request.

(5) An entity fails to comply with a request if, and only if:

(a) no explanation is given in response to the request within the period specified in the request under paragraph (1) (a) (as extended, if at all, under subsection (2)); or

(b) no remedial action is undertaken in response to the request within the period specified in the request under paragraph (1) (b) (as extended, if at all, under subsection (2)).

Review of decisions

(6) Applications may be made to the Administrative Appeals Tribunal for review of the Minister's decision under subsection (4) to publish information about an entity's failure to comply with a request under subsection (1).

(3) Clause 19, page 14 (line 22), omit "under section 13 or 14", substitute "for the purposes of compliance with section 13 or 14 (including a statement given in response to a request under section 16A)".

(4) Clause 21, page 16 (line 8), omit paragraph (c), substitute:

(ba) annual reports about the implementation of this Act;

(c) the 3-year review of this Act;

(5) Page 16 (after line 24), after clause 23, insert:

23A Annual reports about implementation

(1) The Minister must cause a report to be prepared for each calendar year (including the year in which this section commences) about the implementation of this Act during the year, including the following (without limitation):

(a) an overview of compliance by entities with this Act during the year;

(b) the identification of best practice modern slavery reporting under this Act during the year.

(2) The report must be:

(a) started as soon as practicable after the end of the calendar year for which it is prepared; and

(b) completed before the end of the calendar year in which it is started.

(3) The Minister must cause copies of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the completion of the report.

(6) Heading to clause 24, page 16 (line 25), omit the heading, substitute:

24 Three -year review

(7) Clause 24, page 17 (after line 2), after paragraph (1) (a), insert:

(aa) compliance with this Act and any rules over that period; and

(ab) whether additional measures to improve compliance with this Act and any rules are necessary or desirable, such as civil penalties for failure to comply with the requirements of this Act; and

(ac) whether a further review of this Act and any rules should be undertaken, and if so, when; and

(ad) whether it is necessary or desirable to do anything else to improve the operation of this Act and any rules; and

(8) Clause 24, page 17 (line 3), at the end of paragraph (1) (b), add "to implement review recommendations".

The Modern Slavery Bill is a major milestone in Australia's response to modern slavery. As we know, the bill will establish a national modern slavery reporting requirement to hold large businesses accountable for their actions to prevent and address modern slavery. The government is committed to ensuring that the reporting requirement will lead to meaningful and effective change. Today I am pleased to move amendments to the bill to further strengthen the operation of the reporting requirements. I thank senators in this chamber who have worked with me to develop these, and the Legal and Constitutional Affairs Legislation Committee, chaired by Senator Macdonald, which also made recommendations we are acting on today.

The government's amendments make three key changes to the bill before us. Firstly, the amendments will empower the minister to require suspected non-compliant entities to explain their noncompliance and take remedial action. The minister will also have the power to publicly name entities that do not comply. This ensures that the bill provides an appropriate mechanism to address suspected cases of noncompliance with the reporting requirement over the first three years of its operation.

Secondly, the amendments will explicitly require the three-year review of the reporting requirement to consider if additional compliance mechanisms are required, including civil penalties. The review will also consider the necessity for, and timing of, future reviews. Consistent with the recommendations of the Senate Legal and Constitutional Affairs Legislation Committee, this will establish a clear pathway to future civil penalties if initial compliance rates are inadequate.

Finally, the amendments will require the minister responsible for the legislation to report annually to the parliament about the implementation of the reporting requirement, including compliance trends. This will ensure the reporting requirement is subject to ongoing monitoring and evaluation by the parliament. The annual reports will also provide an evidence base to inform the three-year review and, as I said, the review will consider if and when future reviews are required, which directly relates to one of the issues Senator McKim had. I and the government believe that these amendments reflect international best practice and will ensure the reporting requirement makes a significant impact in the fight against modern slavery.