Federal Government announces next steps in Modern Slavery Act reform

Anti Slavery

The Australian Federal Government has launched a public consultation to explore ways to enhance the Modern Slavery Act 2018, with backing from the Anti-Slavery Commissioner.

Last week, the Attorney‑General’s Department (AGD) opened the consultation process – which ends on 1 September – with the goal of simplifying and improving transparency requirements for large businesses while introducing stronger enforcement against non‑compliance.

Attorney-General Michelle Rowland said the Federal Government is committed to combatting modern slavery in all its forms.

“Modern slavery practices, which include human trafficking and forced labour, are abhorrent crimes with significant impacts on individuals and the broader community,” she said.

“We will support businesses operating in Australia to take action to eliminate modern slavery risks and practices, and combat them in their supply chains.

“I encourage businesses, experts and community members to contribute their views and help ensure Australia’s laws effectively combat modern slavery.”

Anti-Slavery Commissioner Chris Evans welcomed the commencement of public consultations by the AGD.

“Australians want to know that the workers here and around the world who produce the goods and services we all consume, are living and working in freedom and dignity,” he said.

“The Modern Slavery Act has significantly increased awareness of modern slavery in business operations and supply chains, but reforms to elicit more impactful action are long overdue. 

“After extensive consultations in my first six months in this role, there is clearly a need for more ambitious reform. I look forward to engaging with both Government and key stakeholders on these much-needed reforms.”

At the end of last year, the Federal Government responded to an independent review of the Modern Slavery Act, which suggested the introduction of penalties and due diligence obligations that mirror the European Union’s new Corporate Sustainability Due Diligence Directive.

The Government agreed in full, part or in-principle to 25 of the 30 recommendations from the review, which was completed by Professor John McMillan AO, but said it wanted to undertake further consultations on major proposed reforms.

Last week’s announcement follows recent research from Walk Free and WikiRate’s global Beyond Compliance project, which revealed a staggering 64 percent of companies are failing to meet the minimum reporting requirements set out in Australia’s Modern Slavery Act.

Under the Act, large entities with an annual consolidated revenue of at least A$100 million are required to submit annual modern slavery statements, describing their actions to assess and address modern slavery risks in their operations and supply chains.

The Anti-Slavery Commissioner recently issued a letter to major law firms, advisory firms and industry bodies regarding business compliance with the Modern Slavery Act.

It outlined the increasing capability of the AGD to identify non-reporting entities and the Government’s agreement ‘in principle’ to introduce penalties for specific reporting failures, while emphasising the need for entities to review and meet their reporting obligations under the Act, alongside a call to action to amplify this message.

Walk Free, a Perth-based international human rights group, reports 41,000 people are living in modern slavery in Australia, with the nation also importing more than $25 billion worth of goods that are at risk of modern slavery annually.

The organisation has previously urged the Federal Government to act decisively and strengthen modern slavery laws, saying a delayed and weak response to the independent review of the Modern Slavery Act is hindering the nation’s progress in combatting modern slavery effectively.

The Consultation Paper is available on the AGD Consultation hub, alongside information on how to make a submission.