Australian businesses need the protection of stronger modern slavery laws, says Walk Free

Modern Slavery

Walk Free has urged the Federal Government to act decisively and strengthen modern slavery laws, saying a weak response to the independent review of Australia’s Modern Slavery Act is hindering the nation’s progress in combating modern slavery effectively.

The Perth-based international human rights group points to the Government’s failure to implement key recommendations from the 2023 review, instead calling last week for further consultation after 18 months of consideration.

The review suggested the introduction of penalties and due diligence obligations that mirror the European Union’s new Corporate Sustainability Due Diligence Directive, which will require large businesses to identify and address human rights abuses – including modern slavery – within their supply chains.

“The Government has once again demonstrated that their commitment to protecting fundamental human rights is little more than lip service,” says Walk Free’s Founding Director Grace Forrest.

“By not adopting similar legislation, the Australian Government is failing vulnerable workers worldwide and Australian businesses.

“A proactive approach now would have positioned Australian businesses as preferred suppliers to Europe. Instead, the Government has chosen to ignore an opportunity to support both human rights and economic growth.”

Walk Free’s Global Slavery Index reveals that 41,000 people are living in modern slavery in Australia, with the nation also importing more than AUD $25 billion worth of goods that are at risk of modern slavery annually.

The group says modern slavery laws without complementary enforcement mechanisms don’t work in practice, with the failure to strengthen the Act representing a significant setback for human rights and business.

Walk Free’s Director of Business and Human Rights Serena Grant said some Australian companies have taken commendable steps to address modern slavery, but without strong laws, their competitors can do nothing and remain at a disadvantage.

“Through the statutory review, the Government has already run a detailed consultation with business and other stakeholders. It is disappointing that the Government has chosen to redo this process when the recommendations for penalties and due diligence systems were already so clear,” she said.

“This is also a missed opportunity to help Australian businesses prepare for the EU’s due diligence requirements, which will come into force in 2027. Instead of leading the way, Australian companies will now be left scrambling to meet international standards.”

The Federal Government released its response to the review of the Modern Slavery Act on 2nd December, stating that it agrees in full, part or in-principle to 25 of the 30 recommendations from the review that was completed by Professor John McMillan AO.

“The response also commits the Government to consulting on, among other things, a potential model for written declarations of a region, location, industry, product, supplier or supply chain that is regarded as carrying a high modern slavery risk,” said a joint statement from Minister for Foreign Affairs Penny Wong and Attorney-General Mark Dreyfus.

Carolyn Kitto, Co-Director of Be Slavery Free said the Government has had the Modern Slavery Act Review report for 557 days, during which time an estimated 15 million more people have fallen into slavery.

“While these commitments are welcome, urgent action to implement all recommendations is critical. We cannot afford another delay like this,” she added.