Modern Slavery Bill reported back

The Modern Slavery Bill has been reported back to the House with a recommendation that it be passed.

Although ACT delivered a minority report opposing the Bill, it has majority support as it was jointly sponsored by Labour MP Camilla Belich and National MP Greg Fleming. However, there are very few sitting days left before Parliament rises for the elections.

The Bill would bring New Zealand into alignment with Australia and the United Kingdom, who also have modern slavery regimes, and would require larger entities to report publicly on how they identify, address, mitigate, and remediate modern slavery in their operations and supply chains — both in New Zealand and abroad.

The Education and Workforce Committee has recommended a number of amendments to improve the Bill's workability and cross-border alignment. We detail the changes and look ahead to the next steps in the process.

Who is in scope?

The Bill applies to entities, public sector and private, with consolidated revenue exceeding $100m. The threshold must be met across the entity's two preceding accounting periods, consistent with comparable New Zealand reporting regimes. It includes any subsidiaries, ensuring that the regime cannot be avoided simply through corporate structuring.

The Select Committee has retained the $100m threshold but limited the ability to amend it by regulation to CPI adjustments only. Around 1,250 entities in New Zealand are estimated to meet the threshold.

What would the Bill require?

Reporting entities must prepare and publish annual modern slavery statements disclosing:

any modern slavery that has occurred within their operations and supply chains
any known or anticipated risks of modern slavery
any due diligence actions taken to identify, assess, prevent, eliminate, mitigate, address, or account for those risks
details of complaints received and remediation measures taken
how the entity assesses the effectiveness of its actions and continually improves related processes, and
any training or consultation carried out with its employees in relation to identifying modern slavery.

Statements must be approved by the entity's board and signed by an authorised person

The above requirements go further than the equivalent Australian requirements by requiring specific disclosure of any modern slavery that has occurred, and of complaints received, in the reporting year.

Key recommendations

Additional time for transition to the regime: the first reporting period will be the 12-month period beginning after commencement, meaning that first statements could be due around 24 months after enactment

Reporting aligned with financial years: the definition of "reporting period" has been amended so that statements are due six months after the reporting entity's own balance date, rather than being tied to a fixed calendar date.

Group and joint reporting: the Bill now expressly allows entities with subsidiaries to submit a joint modern slavery statement. This aligns with practice in Australia and other New Zealand corporate reporting regimes. Statements must include a list of any subsidiaries covered.

Recognition of Australian statements: overseas reporting entities may submit a modern slavery statement prepared under Australia's Modern Slavery Act 2018 in satisfaction of their New Zealand obligations. Regulations may extend this recognition to other overseas jurisdictions in future.

Voluntary reporting: entities below the threshold may voluntarily submit modern slavery statements, but these must meet the same standards as mandatory reports.

No due diligence regime prescribed

"Due diligence" is defined broadly as the ongoing, systematic process by which an entity identifies, assesses, prevents, eliminates, mitigates, addresses, and accounts for the risk of modern slavery, including taking reasonable steps to remediate adverse impacts caused or contributed to by the entity.

The practical effect for reporting entities is that any due diligence actions taken must be described in the entity’s modern slavery statement, but the Bill does not prescribe what those actions must be. Entities therefore retain flexibility in deciding how — and whether — to address modern slavery risks beyond reporting and disclosure.

The Select Committee is not recommending that New Zealand adopt a comprehensive due diligence regime under which entities would have to take action to address, rather than simply disclose, modern slavery risks in their operations and supply chains. It has noted, however, that Australia is considering moving to this model and suggests that future Governments monitor developments in that and other jurisdictions.

Enforcement

Pecuniary penalties of up to $600,000 per contravention remain for entities that fail to comply with reporting requirements without reasonable excuse. A criminal offence carrying fines of up to $200,000 applies for individuals knowingly making a material false or misleading statement.

Director liability

Director and senior manager liability has been narrowed from the Bill as introduced. Under the amended regime, a director or senior manager is liable only where:

the entity's contravention of the reporting requirements is in a material particular (which mirrors wording found in other legislation, including the Financial Markets Conduct Act 2013)
the director or senior manager knew or should have known the contravention would occur, and
the director or senior manager either consented to the act or omission (e.g. the failure to publish a modern slavery statement) or failed to take reasonable steps to prevent it.

Name and shame mechanism

The Select Committee has introduced a "name and shame" mechanism, allowing the Registrar to publish information about non-compliance where an entity fails to remediate after being asked to do so.

Review of Act

The Bill retains a three-year review requirement as a built-in opportunity to assess whether the regime is changing behaviour and whether stronger measures are needed. A second review must follow five years after the first.

Alignment with Australia

A strong theme throughout the Committee's amendments is alignment with Australia's Modern Slavery Act 2018. The recognition of Australian modern slavery statements, the allowance for group reporting, and the alignment of reporting periods with financial years all reduce compliance burdens for businesses operating across both jurisdictions.

However, the Bill goes further in key respects - notably, its inclusion of civil and criminal penalties with enforcement mechanisms, which Australia is only now considering. Australia’s consultation document does not propose extending liability to directors or officeholders.

Key dates

Milestone	Timing
Bill reported back from Select Committee	31 August 2026 – complete
Next step: second reading and Committee of the whole House	To be scheduled
Act commences	Six months after Royal assent
First modern slavery statements due	Approximately 24 months after enactment
First review of the Act	Three years after commencement
Second review of the Act	Five years after the first review of the Act

Next steps

Timing is tight to pass the Bill before Parliament dissolves ahead of the 2026 general election, with only one scheduled member’s day before Parliament rises on 24 September. However, the Bill’s bipartisan support makes it more likely that this legislation is prioritised. Chapman Tripp will continue to monitor the legislation’s development and provide updates as it progresses.

Businesses expected to be in scope should begin considering their modern slavery risk exposure, supply chain visibility, and reporting readiness now. For businesses already reporting under the

Australian regime, the alignment provisions present an opportunity to leverage existing frameworks.

Our expert team has extensive experience advising on modern slavery law, compliance, and risk mitigation across the UK and Australian regimes, and can assist in preparing for these changes.

See our earlier commentary here.