Australia to reform modern slavery regulations

The Australian government has proposed plans to reform its Modern Slavery Act with the goal of strengthening preventive efforts against exploitation in the domestic supply chain.

If implemented, companies turning in an annual revenue of over 100 million Australian dollars would be required to identify, prevent, and address risks of modern slavery, or face criminal liability.

These measures will apply to companies that will then have the opportunity to prove they took reasonable steps to prevent modern slavery.

Other measures, like deferred prosecution arrangements, civil penalties for inadequate reporting, and further guidance, are also included in reform proposals, which will undergo formal consultations.

In its current format, the act does not impose penalties on companies that fail to report risks of exploitation, meaning that related regulation in Australia has fallen behind similar yet more stringent litigation in other regions.

In Europe and some Asian countries, a growing emphasis on due diligence has seen the responsibility of businesses extend beyond simply reporting to also identifying and addressing risks.

In a statement, founding director of Australian human rights group Walk Free, Grace Forrest, said: “This is a sign of genuine momentum, showing Australia is finally catching up with its global trading partners.

“Introducing criminal liability into the Modern Slavery Act confirms the government is serious about holding businesses to account for failing to prevent exploitation in their supply chains.”