Strengthening the Modern Slavery Act 2018 (Cth)
PART E – Notification requirements to cease as a reporting entity
There are currently no requirements in the Modern Slavery Act for a reporting entity to provide notification that they will not be providing a modern slavery statement in a year following the earlier lodgement of a statement. There are several reasons why an entity may no longer meet the reporting threshold. These include decreased revenue for a reporting period or acquisition by another entity. As there is no formal mechanism for an entity to advise that they no longer meet the reporting threshold and will not be providing a statement for that reporting period, this inhibits the regulator’s visibility of who is a reporting entity, which impacts the regulator’s ability to undertake effective compliance action.
In response to recommendation 21 (notification requirements for reporting entities) from the review, we are seeking views on the following:
- An entity must provide notification that they will not be providing a modern slavery statement in a year following the earlier lodgement of a statement.
- An entity would remain as a reporting entity until they provide notification they will not be reporting, even if they no longer meet the threshold of a reporting entity under section 5 of the Modern Slavery Act.
- An entity must provide notification within 6 months following the end of the reporting period.
- An entity must provide an explanation as to why it will no longer be reporting under the Modern Slavery Act.
For further information on options to change the notification requirements to cease as a reporting entity refer to Part E of the consultation paper.