A federal government crackdown on big businesses that fail to take action to eradicate modern slavery from their supply chains is a welcome step to ending forced labour, human rights advocates say. Attorney-General Michelle Rowland has announced the nation’s modern slavery laws will be strengthened with substantial fines and criminal offences. The Albanese Government has announced plans for a new criminal offence and civil penalties for large companies that fail to prevent modern slavery in their supply chains. The move gives the law “some teeth” after years of a voluntary code that was able to be ignored by the worst offending companies, many of which continued to source from high-risk regions without meaningful due diligence.
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Australia imports billions of dollars of goods with a high risk of slavery in their supply chains every year, including electronics, garments, seafood and agricultural products from countries with weak labour protections and limited enforcement capacity. Human rights advocates have welcomed the crackdown, describing it as a welcome step to ending forced labour. The Australian Council of Trade Unions also welcomed the announcement, describing it as a long-overdue reform that will improve corporate accountability and help prevent labour exploitation. The new laws will make big companies criminally liable for modern slavery in supply chains, with penalties that include fines of up to $10 million or 10 per cent of annual turnover, whichever is greater, and potential imprisonment for senior executives in egregious cases.
The strengthened laws respond to longstanding concerns that the existing framework, which relied on voluntary reporting, was inadequate to address the scale of modern slavery risks in global supply chains. The new criminal offence creates a powerful deterrent for companies that might otherwise turn a blind eye to labour abuses in their supply chains. The legislation is expected to have significant implications for large businesses operating in Australia, requiring them to demonstrate robust due diligence processes, including regular audits, risk assessments and transparent reporting. In March 2026, the UN Committee on Economic, Social and Cultural Rights called on Australia to introduce mandatory human rights due diligence, adding international legitimacy to the reforms.
