Australia is set to make large corporations criminally liable if they fail to prevent modern slavery within their supply chains, Attorney General Michelle Rowland announced last week. The legislative shift applies to companies generating over Aus$100 million ($70 million) in revenue and introduces a new criminal offence for failing to stop forced labour and debt bondage in overseas operations.
The policy overhaul follows recent pressure from the United States, where the US Trade Representative placed Australia on a list of 60 countries facing potential 12.5% tariffs over allegations of failing to halt imports tied to forced labour. While Australia’s embassy formally protested the US move—pointing to existing reporting requirements for 4,000 domestic firms and 280 federal police investigations last year—experts note the new domestic rules mark a necessary update.
Australian Anti-Slavery Commissioner Chris Evans acknowledged that Australia had fallen behind international peers since passing its initial anti-slavery legislation eight years ago. Justine Nolan, Director of the Australian Human Rights Institute, welcomed the new measure, stating the reforms will compel businesses to take direct preventative action rather than relying on compliance reporting.
Under the proposed framework, businesses that demonstrate they took reasonable preventative steps will have a legal defence. The government also plans to introduce civil financial penalties for companies that breach existing reporting obligations under the Modern Slavery Act.
