PBD-2025-05 Modern slavery tender clauses for high modern slavery risk procurements

Application

This Direction applies to the procurement of goods and services of any kind, including construction, by a government agency within the meaning of section 162 of the Public Works and Procurement Act 1912.

This direction is issued under section 175(1), (3)(a1) of the Public Works and Procurement Act 1912 (NSW) regarding reasonable steps that are to be taken to ensure that goods and services procured by and for government agencies are not the product of modern slavery within the meaning of the Modern Slavery Act 2018 (NSW).

Detailed outline

Government agencies must use heightened due diligence tender clauses in tender processes for high modern slavery risk procurements.

This direction commences 1 January 2026. Compliance with this direction is optional until 1 July 2026. Government agencies must comply with this direction when undertaking a procurement that commences 1 July 2026 or later.

Agencies are encouraged to include heightened due diligence tender clauses in documentation for high modern slavery risk procurements from 1 January 2026 where feasible.

Heightened due diligence tender clauses

NSW Government agencies must use tender clauses on modern slavery that are substantially based on the heightened due diligence model tender clauses prepared by the Office of the NSW Anti-slavery Commissioner (OASC) (Attachment 1), or that otherwise align with the principles for heightened due diligence in the Guidance on Reasonable Steps issued by the OASC.

High modern slavery risk procurements are procurements of goods and services (including construction) in procurement categories assigned an inherent modern slavery risk level of ‘High’ by the OASC’s Inherent Risk Identification Tool (IRIT) and therefore requiring heightened modern slavery due diligence.

The OASC heightened due diligence model tender clauses may be adapted to suit the needs of each agency and each procurement as long as they remain consistent with the principles for heightened due diligence in the Guidance on Reasonable Steps. These principles are summarised in the document ‘Using the GRS Model Tender Clauses (MTCs) to assess modern slavery risk in your procurements’ attached to this direction (Attachment 2).

Implementation timing

This direction provides for a 6-month transitional period from 1 January to 30 June 2026 to allow for agency implementation. Government agencies must comply with this direction when undertaking a procurement that commences 1 July 2026 or later.

For the purpose of this Direction, a procurement is taken to have commenced if and when:

a)    the business case which contains a strategy for approaching the market for the procurement is:

                    i)          submitted to another government entity for review as part of a mandatory process (for example, an investor assurance (Gateway) process),

                   ii)         if i) is not applicable, approved by the government agency; or

b)    if a) is not applicable, the strategy for approaching the market for the procurement is approved by the government agency; or

c)     if neither a) nor b) is applicable, a request for submissions (Rfx) is provided to the market or supplier(s) by the government agency.

Further information on modern slavery due diligence and reporting

Further information including the Guidance on Reasonable Steps is available from the OASC website: https://dcj.nsw.gov.au/legal-and-justice/our-commissioners/anti-slavery-commissioner/due-diligence-and-reporting.html.

Context

The Minister for Domestic Manufacturing and Government Procurement, Courtney Houssos MLC, on 11 November 2025 directed the NSW Procurement Board to issue this direction.