NSW Government-Owned Businesses and Agencies: Modern Slavery Reporting Requirements in 2026

TL;DR:NSW public-sector modern slavery obligations are not one-size-fits-all. Different rules apply depending on whether your entity is a government agency under the Public Works and Procurement Act 1912, a GSF agency under the Government Sector Finance Act 2018, or a State owned corporation under the Modern Slavery Act 2018 (NSW). As of March 2026, annual reporting remains active, the GRS online annual reporting form is in use, the original Heightened MSDD transactional reporting requirement has been postponed until further notice, and a separate NSW Procurement Board direction on heightened due diligence tender clauses has commenced from 1 January 2026 with mandatory compliance for in-scope procurements starting 1 July 2026.

The first thing NSW entities need to understand is that “government-owned business” is not precise enough for legal and reporting purposes.

In practice, the question is usually whether you are:

• a government agency for procurement purposes under the Public Works and Procurement Act 1912

• a GSF agency for annual reporting purposes under the Government Sector Finance Act 2018 and section 31 of the Modern Slavery Act 2018 (NSW)

• a State owned corporation, which has its own obligations under sections 25A and 25B of the NSW Act

Those categories overlap in some cases, but they are not identical.

That distinction matters because many NSW public entities are currently making one of two mistakes: either they assume all entities have the same obligations, or they rely on guidance intended for a different statutory category.

1) What government agencies must do in NSW

Under section 176(1A) of the Public Works and Procurement Act 1912, a government agency must take reasonable steps to ensure that goods and services procured by and for the agency are not the product of modern slavery. The NSW Procurement Board can issue directions or policies about those reasonable steps under section 175, and the Board must consult regularly with the Anti-slavery Commissioner about the form and content of those directions.

The NSW Anti-slavery Commissioner’s Due Diligence and Reporting page explains that the Act and related legislation created due diligence and reporting obligations for certain NSW public entities, and that the Shared Implementation Framework is intended to support more than 400 covered entities. The centrepiece of that framework is the Guidance on Reasonable Steps, supported by the Inherent Risk Identification Tool, model tender clauses, model contract clauses and the GRS public register.

Government agencies should also be aware of oversight consequences. The NSW Anti-slavery Commissioner’s public register can identify government agencies failing to comply with Procurement Board directions concerning procurement of goods and services that are products of modern slavery, and the Auditor-General may conduct a risk-based modern slavery audit of government agency activities. In that audit context, “due diligence” includes taking reasonable steps, including by contractual terms or otherwise, to ensure primary suppliers are implementing processes to eliminate or minimise modern slavery risk.

2) What GSF agencies must report

Section 31 of the Modern Slavery Act 2018 (NSW) says the annual reporting information for a GSF agency must include two things:first, a statement of action taken in relation to any issue raised by the Anti-slavery Commissioner and identified as a significant issue concerning the agency’s operations; and second, a statement of the steps taken to ensure that goods and services procured by and for the agency during the financial year were not the product of modern slavery.

The NSW Anti-slavery Commissioner’s Covered Entities resource confirms that GSF agencies include, among others, separate GSF agencies, NSW Health entities, the NSW Police Force, the NSW Treasury Corporation, various statutory bodies, and State owned corporations. That same resource says GSF agencies and other entities with reporting obligations under the Government Sector Finance Act must include those section 31 matters in their annual reporting information.

In operational terms, the Commissioner now expects annual reporting in two places: in the entity’s formal annual report and via the online GRS Annual Reporting Form. The November 2025 instructions say covered entities should submit the online form upon publishing the annual report and no later than 45 days after publication.

A detail many entities miss: the GRS says NSW law does not provide for joint or group reporting in the same way the Commonwealth Act does. Each individual covered entity must satisfy its own due diligence and reporting obligations, even if entities collaborate on a joint report or common process.

3) What State owned corporations must do

If by “government-owned businesses” you mean State owned corporations, the NSW Act is explicit.

The Covered Entities resource says State owned corporations must make and publish modern slavery statements under the Commonwealth Modern Slavery Act 2018. Some will already be reporting entities under section 5 of the Commonwealth Act. If they are not, section 25A of the NSW Act requires them to volunteer to comply under section 6 of the Commonwealth Act. Then, under section 25B, as soon as practicable after giving the federal Minister a statement, the corporation must publish a copy on its own publicly accessible website and give the NSW Anti-slavery Commissioner written notice that it has done so.

The NSW public register can also identify any State owned corporation that has failed to provide the federal Minister with a modern slavery statement for a reporting period under the Commonwealth Act.

One important nuance: the Public Works and Procurement Act definition of “government agency” excludes a State owned corporation unless it is prescribed by the regulations. So do not automatically assume that every Procurement Board direction applying to “government agencies” also applies to every State owned corporation in the same way. Many State owned corporations are GSF agencies and have annual reporting obligations, but procurement-direction coverage still needs to be checked carefully against the relevant statutory definition and any applicable regulations.

4) What changed in 2026

This is the part most NSW entities are confused about.

The original Guidance on Reasonable Steps describes a system where covered entities classify procurement and operational activity into Minimal, Light, Standard and Heightened due diligence levels and, from 1 July 2024, report each Heightened MSDD procurement over A$150,000 within 45 working days. That original design is still described in the core GRS document.

However, the Commissioner later changed the implementation position. In May 2025, the Office announced that the Heightened Modern Slavery Due Diligence reporting requirements were postponed until further notice. Then, in November 2025, the updated online annual reporting form removed the question about whether the entity complied with the 45-day HMSDD reporting requirement, specifically because those arrangements had been deferred.

At the same time, a different reform moved ahead. Procurement Board Direction PBD-2025-05 commenced on 1 January 2026. It requires NSW Government agencies in scope to use heightened due diligence tender clauses for high modern slavery risk procurements. Compliance is optional until 1 July 2026, but becomes mandatory for procurements commencing on or after 1 July 2026. The Direction defines high-risk procurements by reference to procurement categories assigned a “High” inherent modern slavery risk level in the Commissioner’s Inherent Risk Identification Tool.

So the current position, in plain English, is this:

• annual reporting is active

• the GRS online annual reporting form is active

• the original transactional HMSDD reporting regime is deferred

• tender-clause uplift for in-scope high-risk agency procurements has started, with full compliance from 1 July 2026

That is the real 2026 compliance picture.

5) What NSW entities should do now

If you are a NSW public entity, the practical priority is not to argue about labels. It is to map your entity type to the right obligations and build a reporting process that joins up legal, procurement, risk and governance.

At minimum, entities should confirm:

• whether they are a government agency, GSF agency, State owned corporation, or more than one

• which annual reporting provisions apply

• whether their procurements fall inside current Procurement Board directions

• how they are classifying high-risk categories

• whether their tender and contract documents align with current GRS expectations

• who owns the GRS online reporting submission

• what evidence will support the next annual report

Those steps are much more useful than producing another generic statement about zero tolerance.

How ESG Impact helps NSW agencies and government-owned businesses

This is an area where ESG Impact should speak directly and practically.

Your public site already says ESG Impact works across ESG strategy and implementation, supply-chain strategies and modern slavery reporting, ESG reporting and compliance, policy management, and supply-chain management. It also says your experience includes work with government, listed and unlisted organisations, and sectors such as infrastructure, utilities, construction and water where public procurement and supply-chain risk are highly relevant.

That supports a clear service message for NSW public entities:

ESG Impact helps NSW agencies and government-owned businesses by:

• clarifying which statutory obligations apply to which entity type

• translating the GRS into practical governance, procurement and reporting actions

• helping teams classify risk and decide where heightened due diligence is needed

• strengthening tender and contract language for high-risk procurements

• improving annual-report content and GRS submission quality

• building policy, evidence trails and board-ready reporting that move beyond boilerplate

That positioning is fully consistent with your published capabilities and stronger than generic “we help with reporting” copy.

Unsure which NSW modern slavery obligations apply to your entity?

ESG Impact helps government agencies, GSF agencies and government-owned businesses map the right rules, strengthen procurement controls and produce reporting that stands up to scrutiny.

FAQ

Do all NSW public entities have the same modern slavery obligations?

No. Obligations differ depending on whether the entity is a government agency, a GSF agency, a State owned corporation, or another covered public entity. The NSW Anti-slavery Commissioner’s Covered Entities resource is the best starting point.

Do State owned corporations have to lodge a Commonwealth statement?

Yes. If they are not already reporting entities under the Commonwealth Act, section 25A of the NSW Act requires them to volunteer under section 6; section 25B then requires publication on their own website and notice to the NSW Commissioner after lodging.

Do NSW entities currently have to do 45-day HMSDD transactional reporting?

Not as of 12 March 2026. The original GRS described that requirement, but the Commissioner postponed HMSDD reporting until further notice and the updated annual reporting form removed that question.

What becomes mandatory on 1 July 2026?

For in-scope NSW Government agency procurements covered by PBD-2025-05, heightened due diligence tender clauses become mandatory for high modern slavery risk procurements commencing on or after 1 July 2026.

If you want the next batch, the strongest follow-ons are a procurement-focused post for CPOs and a sector-specific post on cleaning, construction, solar or ICT.