The Australian Government has announced proposed reforms to strengthen Australia’s modern slavery laws and help companies better identify, manage and address modern slavery risks across their global supply chains.
The reforms are expected to be practical, risk-based and aligned with key international standards. Further consultation with businesses and other relevant stakeholders is expected to commence shortly and will help shape the final details.
Strengthening accountability for businesses
Modern slavery is a serious human rights violation that can have devastating impacts on individuals, depriving victims of their basic freedoms and dignity.
According to the Global Slavery Index, an estimated 50 million people are living in modern slavery worldwide. Addressing these practices requires coordinated action from governments, businesses and communities.
Modern slavery includes practices such as slavery, forced labour and debt bondage. These are crimes under Australian law, including where they occur outside Australia.
While Australia already has a strong legislative framework for addressing modern slavery, the Government says further action is needed to strengthen accountability and improve the way businesses manage risks within their supply chains.
Proposed new offence for larger companies
Under the proposed reforms, companies with annual consolidated revenue of more than $100 million could face a new criminal offence if they fail to take reasonable steps to prevent modern slavery in their supply chains.
Importantly, a company would have a defence where it can demonstrate that it took reasonable steps to prevent modern slavery. This is intended to recognise businesses that have appropriate processes and controls in place to identify and manage modern slavery risks.
Further consultation and enforcement measures
Upcoming consultation will help determine the details of the proposed offence and enforcement arrangements. This will include consideration of measures such as a deferred prosecution agreement scheme and potential remedies for victims.
The Government also intends to introduce civil penalties and additional enforcement powers to address non-compliance with existing obligations under the Modern Slavery Act.
Practical guidance for businesses
The proposed legislative changes will be supported by practical guidance and education initiatives to help companies better identify, manage and remediate modern slavery risks across their supply chains.
For businesses, the reforms highlight the importance of understanding supply chain risks and having appropriate processes in place to identify, assess and address potential modern slavery issues.
Overall, the proposed reforms are intended to strengthen Australia's response to modern slavery while encouraging effective risk management and maintaining a practical and proportionate framework for business.