The government of Australia announced that it will strengthen its laws aimed at preventing modern slavery, including plans to make large companies criminally liable for failing to prevent modern slavery in their supply chains, unless they can prove they have taken reasonable steps to prevent it.
The plans to update the modern slavery laws follows the publication of a report by the U.S. government’s United States Trade Representative (USTR) listing Australia as one of 54 economies that “have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor,” and threatening to impose a 12.5% tariff on imports from Australia as a result. Canada also recently pledged to tighten its forced labor legislation after also being named in the report.
Under the new plans, Australia’s government said that it will strengthen modern slavery laws with a new criminal offence where companies with an annual consolidated revenue over A$100 million (USD$70 million) fail to prevent modern slavery in their supply chains. In order to ensure that companies which have adequate processes and steps in place are afforded appropriate protections, the government said that there will be a defence available if a company can demonstrate that they took reasonable steps to prevent modern slavery.
The government said that it will also introduce civil penalties and associated enforcement powers to address non-compliance with existing obligations under the Modern Slavery Act.
Details of the proposed offence and enforcement options, including consideration of a deferred prosecution agreement scheme and remedies for victims, will be subject to an upcoming consultation, the government statement added.
In addition, the government said that the new reforms will be complemented by practical guidance and education initiatives to assist companies to better identify, manage, and remediate modern slavery risks in their supply chains.
Australia Attorney-General Michelle Rowland said:
“The proposed changes will introduce greater accountability, leveling the playing field for the majority of Australian businesses already doing the right thing.
“We will continue to work closely with stakeholders to inform the design of the proposed legislative changes, ensuring we strengthen efforts to combat modern slavery while continuing to support Australian businesses.”
