One of the world's largest food and drink companies has warned proposed legislation requiring big business to report on their efforts to combat modern slavery could hit consumers' hip pockets.

Companies operating in Australia with an annual turnover of $100 million or more would be required to annually report on the risks of modern slavery within their business and the actions they've taken to address those risks under the federal government's draft Modern Slavery Bill 2018.

Nestle has warned customers could face additional costs if Australia requires companies to report on modern slavery risks. Credit:AFP

The reports would have to cover issues related to human trafficking, slavery, sexual servitude and child labour within businesses' operations and supply chains.

Nestle, owner of more than 2000 brands in 189 countries, has told a senate committee that Australia's proposed mandatory reporting requirements could add "cost and time" to businesses and suppliers "which will need to be borne somewhere".