The Business Council of Australia says the Government’s addition of criminal penalties to the Modern Slavery Act prioritises paperwork over fixing the problem and will significantly add to the already substantial red tape burden faced by business.
Business Council Chief Executive Bran Black said the BCA has long supported the objectives of Australia’s modern slavery framework, and businesses continue to invest in the systems needed to identify and address exploitation in supply chains, at home and overseas.
“Modern slavery has no place in Australian business, and we take the responsibility seriously to stamp it out,” Mr Black said.
“The BCA supports the current Act; however, the priority should be practical guidance and effective implementation of existing reporting requirements, not the imposition of vastly more red tape to Australia’s already staggering compliance burden.”
The Business Council has previously called for stronger regulator guidance, greater consistency in interpreting reporting criteria, and more effective use of the data already being collected through modern slavery statements.
Closer alignment with comparable international regimes on terminology, due diligence expectations and disclosure requirements would also reduce duplication and keep resources focused on addressing modern slavery risk.
“Unfortunately, this announcement adds mountains of paperwork to an already paperwork-intensive system, forcing companies to focus on compliance with new and even more onerous requirements,” Mr Black said.
“The Government has not consulted on these new penalties and they add another layer onto Australia’s large and ever-growing pile of regulation, which already costs business $160 billion a year.”
“The creation of this new criminal offence is contrary to the Government’s stated budget objective of reducing the regulatory burden faced by Australian companies.”
“Undermining a robust system with a hastily conceived new offence doesn’t help end modern slavery. The priority should be implementing the existing framework properly, not creating a new offence that raises more questions than it answers,” Mr Black said.