A coalition of investors, unions, human rights organisations, academics and survivor advocates has urged the Federal Government to strengthen Australia’s Modern Slavery Act, arguing that current reporting requirements are no longer driving meaningful change across corporate supply chains.
More than 100 signatories have backed a joint letter to Attorney-General Mark Dreyfus, calling for mandatory modern slavery due diligence requirements for large companies operating in Australia.
The push comes three years after an independent review of the Modern Slavery Act found it had “not yet caused meaningful change” for people affected by modern slavery.
According to advocacy group and co-signatory Walk Free, the coalition is seeking reforms that would shift corporate compliance efforts beyond disclosure and reporting towards active identification, mitigation and remediation of modern slavery risks.
In the letter, signatories wrote:
“We welcome the Government’s commitment to strengthening Australia’s Modern Slavery Act 2018 (Cth) (Act), including the recent targeted consultations on due diligence requirements.
“As representatives of business, investors, unions, civil society, academics and survivor advocates, we recognise the importance of ensuring that the Act continues to evolve in a way that is both effective and practical.”
The coalition argues that Australia’s framework now risks lagging behind international developments, particularly as jurisdictions including the European Union move towards mandatory human rights and environmental due diligence requirements.
“With an estimated 50 million people in modern slavery globally, including nearly 28 million in conditions of forced labour, Australia must move beyond disclosure alone and strengthen the Act to drive meaningful action,” the letter states.
The signatories highlighted that many businesses have already invested in these capabilities.
“Many Australian businesses are already taking meaningful action to identify and address modern slavery risks to support their reporting under the Act. These include investing in due diligence systems, engaging with suppliers and building internal capability.”
However, the letter notes that adoption of responsible sourcing practices remains inconsistent across the market, creating challenges for companies that have invested heavily in such practices.
“Clarifying the due diligence requirements under the Act will help level the playing field, provide certainty and ensure the Act is effective and fit for purpose.”
The coalition is urging the Federal Government to prioritise two key reforms: alignment with international frameworks, including the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct; and a requirement for companies to undertake risk-based due diligence.
According to the letter, mandatory due diligence would “level the playing field and promote an effective, proportionate and outcome-focused approach to addressing modern slavery – reflecting what many Australian businesses are already doing.”
The call has attracted support from organisations spanning investment, labour, legal, human rights and corporate sectors, including the Australian Council of Trade Unions, IFM Investors, Responsible Investment Association Australasia, Oxfam Australia, Human Rights Watch, UniSuper, World Vision Australia and the Human Rights Law Centre.
Advocates argue that stronger due diligence obligations would improve accountability while helping Australian businesses remain competitive in global markets where supply chain transparency requirements are becoming increasingly stringent.
“The upcoming reform is a crucial opportunity to bring clarity to entities acting in good faith, hold noncompliant entities to account, lift conditions for people trapped in forced labour, and align Australia with global standards,” the letter concludes.
“This will support business productivity by reducing barriers to global markets and refocusing efforts on action rather than just reporting.
“It is a chance for Australia to continue showing leadership in building supply chains where the people who produce our food, clothing and technology live and work in freedom and dignity.”
