Australia to Toughen Modern Slavery Penalty After U.S. Tariff Threat
The reforms would create a new offence and civil penalties, with fines set after consultation and defenses available for companies that took reasonable steps.
- On Thursday, Attorney-General Michelle Rowland announced that large firms with annual revenue above $100 million face criminal prosecution for failing to prevent modern slavery in supply chains.
- Mounting international scrutiny prompted the reforms, as the Trump administration threatened a 12.5% tariff on exports from 60 countries, including Australia, with U.S. Trade Representative Jamieson Greer declaring the situation "unacceptable."
- Australian Anti-Slavery Commissioner Chris Evans stated the provisions add "teeth" to the framework, as the Global Slavery Index estimates 50 million people live in modern slavery and 21% of Australian imports are linked to forced labor.
- Companies will have a defense if they demonstrate reasonable steps to identify exploitation, a move Human Rights Law Centre Associate Legal Director Freya Dinshaw called a "welcome and long-overdue step."
- Walk Free founding director Grace Forrest cautioned that reforms only succeed if prosecutions remain achievable, warning that if the conviction bar is set too high, survivors may be left without recourse under the Modern Slavery Act.
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Australia to toughen modern slavery penalty after US threatens trade tariffs
Weeks after the United States threatened trade tariffs over the issue, Australia has announced that large companies that fail to prevent modern slavery – which includes forced labor and debt bondage – in their supply chains will be held criminally liable.
Sydney Morning Herald
Australian companies could face criminal charges over forced labour in global supply chains
The proposed changes come after Australia was singled out by the Trump administration last month for failing to do enough to stop imports made with forced labour.
The Australian government will introduce a new criminal offense targeting modern slavery in the supply chain, requiring large companies to demonstrate they have taken measures to prevent forced labor. Attorney-General Michelle Rowland stated that the new law will apply to companies with annual consolidated revenue exceeding AU$100 million. "Australia has a robust legislative framework and a world-leading approach to modern slavery, but we can an…
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