The Modern Slavery Act 2018 has been under review, with key recommendations for reform emerging in 2021. In December 2024, the Australian government issued its response to the independent review of the Act. The government has agreed, or agreed in principle, to 25 out of 30 recommendations, signalling a more robust approach to addressing modern slavery in corporate supply chains.
Key reforms include:
- Mandatory Reporting: Companies with annual revenue of $100 million or more will be required to report on their efforts to identify and address modern slavery risks within their operations and supply chains. Notably, the current reporting threshold remains unchanged, despite recommendations to lower it. However, the government has agreed in principle to consult further on changes to the reporting criteria, which may include:
- Modern slavery incidents or risks identified by the entity during the reporting year;
- Grievance and complaint mechanisms provided by the entity to staff members, staff of suppliers, and the public to report modern slavery risks; and
- Internal and external consultations conducted by the entity on modern slavery risk management during the reporting year.
- No Obligation for a Due Diligence System: The government has decided not to introduce a requirement for reporting entities to have a due diligence system at this stage. However, the Attorney-General’s department will conduct further consultations to explore how the Act can be amended to strengthen its due diligence requirements.
- Penalties for Non-Compliance with the Act: The government has agreed in principle to introduce penalties for non-compliance with the Act, specifically for failing to produce a modern slavery statement, providing false information in the statement or failing to comply with a request for specified remedial action. The government acknowledges the need for a variety of regulatory powers and enforcement tools to address non-compliance in a proportionate manner and provide alternatives to court proceedings.
- Establishment of an Australian Anti-Slavery Commissioner: On 2 December 2024, former Senator for Western Australia, Mr. Chris Evans, began his five-year term as the first Anti-Slavery Commissioner in Australia. The Commissioner’s role is focused on supporting entities in addressing modern slavery risks.
- Declarations of High-Risk Matters: The government has agreed in principle to empower the Anti-Slavery Commissioner to issue written declarations regarding regions, locations, industries, products, suppliers, or supply chains deemed to carry a high modern slavery risk.
These changes reflect Australia’s increasing commitment to corporate accountability and its alignment with global efforts to combat human trafficking and exploitation in supply chains. However, given the upcoming 2025 elections, it remains uncertain whether the current recommendations will progress under the new government.
