Why Do You Need to Do This?
The Modern Slavery Act 2018 requires large businesses (those with annual consolidated revenue over $100 million) to report annually on the risks of modern slavery in their operations and supply chains, and the steps they are taking to address them.
Even if your business is small and not directly required to report, companies that do report must assess their entire supply chain. This includes checking with small suppliers and subcontractors like you to ensure modern slavery risks are identified and managed throughout the network.
What Is Modern Slavery?
Modern slavery includes serious forms of exploitation such as:
Forced labour
Child labour
Debt bondage
Human trafficking
Unfair or exploitative working conditions
These risks can exist both within Australia and overseas, particularly in industries or supply chains involving low-cost goods, raw materials, or offshore labour.
How Should You Respond?
As a small business or sole trader, you're not expected to carry out audits or have complex reporting systems. However, you are expected to show that you:
Understand what modern slavery is
Are aware of risks in your supply chain
Take reasonable steps to avoid supporting it
You can address the following three areas in your response:
1. Describe the measures undertaken to reduce the prevalence of Modern Slavery in your supply chain
Example response:
"I don’t employ anyone, and I buy goods and services from reputable Australian suppliers. I avoid using offshore or high-risk suppliers and make purchasing decisions based on ethical practices as well as price. I would take steps to stop using a supplier if I found they were linked to forced or exploitative labour."
2. Can you provide stakeholders with reliable insights into the Modern Slavery footprint of your goods and services?
Example response:
"I don’t import goods or use complex supply chains. If asked, I can share who I buy from and what I use in my work. I’m happy to provide transparency about my suppliers to help clients understand their broader supply chain."
3. Describe how you maintain awareness of Modern Slavery in your supply chain
Example response:
"I stay informed about modern slavery risks by reviewing guidance from government and industry sources. I avoid sourcing from countries or industries known for labour exploitation and choose local suppliers with strong reputations."
Tips for Tailoring Your Answer
Depending on your business, you might also include:
If you have employees: Confirm they are legally employed, fairly paid, and working in safe conditions.
If you use subcontractors: Mention whether you check their legal work rights or ask about their business practices.
If you import goods: Briefly explain how you assess supplier risk (e.g. country of origin, supplier reputation, ethical sourcing policies).
If you only work locally: Highlight your use of trusted, low-risk suppliers and your awareness of modern slavery issues.
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