Modern Slavery Act: Australia vs the UK compared

The headline difference

The most significant distinction between the Australian and UK legislation lies in the financial reporting thresholds. Australia’s Modern Slavery Act 2018 (Cth) mandates reporting for entities with consolidated annual revenue of at least AUD $100M. The UK Modern Slavery Act 2015, conversely, requires reporting from organisations with total annual turnover of at least £36M. Businesses operating in both jurisdictions should use a modern slavery threshold checker to determine their reporting obligations.

Both Acts require businesses to publish an annual modern slavery statement. However, the specific content requirements and the nature of the public registers where these statements are published are not identical.

• Reporting threshold: Australia – consolidated annual revenue of at least AUD $100M.
• Reporting threshold: UK – total annual turnover of at least £36M.

Reporting thresholds

Reporting obligations differ between the Australian and UK Modern Slavery Acts. In Australia, an entity is required to report if it is a reporting entity and has consolidated revenue of at least AUD $100 million. Entities with lower revenue can choose to report on a voluntary basis.

The UK legislation imposes a requirement on commercial organisations. These organisations must publish a slavery and human-trafficking statement if they supply goods or services with a turnover of at least £36 million.

The revenue thresholds for reporting are distinct:

• Australia: AUD $100 million
• UK: £36 million

Mandatory criteria

The Australian Modern Slavery Act sets out specific requirements for reporting. Section 16 of the Act prescribes seven mandatory reporting criteria that entities must address in their statements. These criteria cover areas such as the entity’s structure, operations, supply chains, an assessment of risks, actions taken to address slavery risks, and an assessment of the effectiveness of those actions. This structured approach aims to ensure a degree of consistency and comparability across reports. A modern slavery statement scaffold can assist in meeting these requirements.

In contrast, the UK Modern Slavery Act provides a list of suggested content areas for statements. This approach offers greater flexibility for reporting entities, but it also means there is less uniformity in the information disclosed and a reduced ability to directly compare reports.

To ensure accountability, the Australian Act requires that statements are approved by the principal governing body of the entity and signed by a responsible member.

Register, deadlines and penalties

The Australian and UK Modern Slavery Acts differ in how organisations make their statements publicly available. In Australia, statements are lodged on a free, public, government-run Modern Slavery Statements Register within six months of the end of the reporting period. The UK regime requires statements to be published on the organisation's own website, although a government registry also exists.

Both countries have faced criticism regarding the enforcement of their respective Acts. Australia’s Act has historically lacked financial penalties for non-reporting, although reform addressing this has been considered. Similarly, the UK’s regime has been subject to criticism for weak enforcement.

• Australia: Statements lodged on a government register.
• UK: Statements published on an organisation’s website.