Australia Proposes Criminal Charges for Forced Labor in Supply Chains

The Australian government is proposing sweeping reforms to the Modern Slavery Act that would introduce criminal prosecutions and civil penalties for large companies failing to prevent forced labor in their global supply chains. Attorney-General Michelle Rowland announced that businesses with an annual consolidated revenue exceeding $100 million could commit a new criminal offense if they fail to stop modern slavery, though companies can defend themselves by proving they took reasonable steps to prevent such exploitation.

These reforms follow an independent review by Professor John McMillan, which found the 2018 Act had not caused meaningful change, and criticism from modern slavery commissioner Chris Evans. The move also comes amid international pressure from the United States, which singled out Australia as one of 54 economies failing to curb forced labor imports. U.S. Trade Representative Jamieson Greer threatened a 12.5 percent levy on affected goods, stating that the failure of trading partners to address the issue is unacceptable.

While the antislavery group Walk Free welcomed the momentum, founding director Grace Forrest cautioned that the effectiveness of the law depends on the threshold for convictions. The government intends to consult on the implementation of the new offense, including potential deferred prosecution agreements and victim remedies.