Overview
- The federal proposal would create a new criminal offence for companies with consolidated annual revenue above A$100 million if they fail to prevent modern slavery in their global supply chains.
- Firms would have a statutory defence if they can show they took reasonable steps to identify and prevent forced labour, with the government promising guidance and education to help meet that test.
- Civil penalties will replace the largely voluntary reporting regime under the 2018 Modern Slavery Act, but exact fine amounts and enforcement rules will be set after stakeholder consultation.
- The announcement follows US trade action that flagged Australia for weak import controls on goods made with forced labour and threatened a 12.5% tariff, a pressure cited by officials and commentators.
- About 4,000 entities currently file modern slavery statements and the AFP investigated roughly 280 reports last year, and advocates say consultation outcomes on prosecutorial thresholds, deferred prosecution agreements and victim remedies will determine whether the reforms deliver real accountability and support for survivors.