Australia federal: Proposed amendments to modern slavery laws

At a glance

• Australia’s modern slavery regime is set for significant reform, with proposed changes including civil penalties, stronger enforcement powers and a new criminal offence for businesses with over AUD100 million in consolidated revenue.
• Although the reforms are yet to be enacted, businesses should begin reviewing their modern slavery frameworks, due diligence processes and supporting records in anticipation of a stronger compliance and enforcement regime.

The Australian Government has announced plans to strengthen the modern slavery framework under the Modern Slavery Act 2018 (Cth), following criticism that the existing regime does not go far enough to ensure business compliance and address modern slavery risks.

The proposed reforms include civil penalties and enhanced enforcement powers for non-compliance with existing reporting obligations, together with a new criminal offence for businesses that fail to prevent modern slavery in their supply chains. The proposed criminal offence would apply to businesses with an annual consolidated revenue of more than AUD100 million, with a defence available where a business can demonstrate that it took reasonable steps to prevent modern slavery.

The reforms signal a potential shift away from a framework focused on transparency and reporting towards one involving greater accountability and enforcement. If enacted, businesses may face greater consequences for non-compliance, increasing the importance of robust due diligence processes, controls and risk management measures.

The reforms are not yet law, and their final form remains subject to consultation and the legislative process.

In anticipation of a strengthened regime, businesses should consider whether their existing modern slavery frameworks adequately identify and address risks in their operations and supply chains, and whether they can demonstrate the practical steps taken to manage those risks. This includes reviewing existing modern slavery statements, risk assessments, supply-chain due diligence, governance arrangements and supporting records.

Businesses are encouraged to contact our team for tailored advice regarding the implications of the proposed reforms for their operations and supply chains.