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The Albanese Government has announced plans to significantly strengthen Australia’s Modern Slavery Act, signalling a major shift in how organisations will be expected to manage modern slavery risks across their operations and supply chains.
While these reforms are not yet law, they represent a significant policy commitment and a clear indication of the Government’s future direction. Consultation will now commence before legislation is drafted, but the expectation is clear: organisations will increasingly need to demonstrate not only that they understand their modern slavery risks, but that they are actively taking reasonable steps to prevent them.
For businesses, the proposed reforms represent an important evolution – from transparency to accountability.
A Shift Towards Prevention
Since Australia’s Modern Slavery Act came into effect in 2019, organisations meeting the reporting threshold have been required to publish annual Modern Slavery Statements describing the risks within their operations and supply chains and the actions they have taken to address them.
The proposed reforms would significantly raise that expectation.
Among the key changes announced by the Government are:
- A proposed “failure to prevent” offence for organisations with annual consolidated revenue over $100 million – taking reasonable steps to prevent modern slavery is a proposed defence.
- Civil penalties for organisations that fail to comply with existing reporting obligations under the Modern Slavery Act.
- Enhanced reporting requirements.
The current expectation is that legislation will be developed over the next 12 months, with a Bill likely to be introduced in 2027 and commencement potentially during 2027 – 28.
A Welcome Development from the Australian Anti-Slavery Commissioner
Following the Government’s announcement, Australian Anti-Slavery Commissioner Chris Evans welcomed the proposed reforms, describing them as an important step towards strengthening Australia’s response to modern slavery.
Commissioner Evans noted that while Australia was once regarded as a global leader in modern slavery legislation, other jurisdictions have since introduced stronger enforcement mechanisms, mandatory due diligence obligations and import controls. He said the proposed criminal “failure to prevent” offence sends an important signal that businesses should treat modern slavery with the seriousness it deserves.
Importantly, the Commissioner also highlighted that future reforms should:
- Build on the investment businesses have already made in human rights due diligence.
- Prioritise meaningful outcomes for victims.
- Move organisations beyond “performative compliance.”
- Encourage collaboration across industries to address shared supply chain risks.
- Help Australian businesses remain competitive as global regulatory expectations continue to evolve.
His comments reinforce a growing international trend: organisations are increasingly expected to demonstrate genuine action – not simply disclose risks.
What This Means for Organisations
If the proposed reforms proceed, organisations will likely need to show evidence that they have robust systems in place to identify, assess and prevent modern slavery risks.
That means moving beyond policies and annual reporting to embedding effective due diligence throughout procurement and supply chain management.
Areas organisations should be considering now include:
- Human Rights Due Diligence (HRDD)
- Supplier risk assessments and ongoing monitoring
- Independent supplier verification
- Social auditing programs
- Governance and accountability frameworks
- Risk-based supplier engagement
- Evidence that preventative measures are operating effectively.
The emphasis is expected to shift towards demonstrating that reasonable preventative steps have been taken – not simply documenting that risks exist.
Why Preparing Early Matters
Although legislation is still being developed, organisations that begin preparing now will be in a much stronger position once new requirements are introduced.
Building mature supplier management processes, improving supply chain visibility and embedding human rights due diligence across the business cannot be achieved overnight.
Early action allows organisations to:
- Strengthen supply chain resilience.
- Improve visibility of supplier risks.
- Reduce future compliance burdens.
- Build trust with customers, investors and regulators.
- Demonstrate leadership in responsible business practices.
Perhaps most importantly, organisations will have time to develop practical, evidence-based processes rather than reacting once legislative deadlines are announced.
How Intertek SAI Global Supports Organisations
At Intertek SAI Global, we view these proposed reforms as a positive development.
They reinforce the direction many organisations are already taking – moving beyond compliance towards proactive risk management and prevention.
Our services support organisations throughout this journey, including:
- Human Rights Due Diligence (HRDD)
- Supplier management and risk assessment
- Inlight™ supply chain intelligence and risk monitoring
- Independent verification services
- Social auditing
- Governance and assurance programs
These capabilities help organisations build the evidence, governance and confidence needed to respond to increasing regulatory expectations while strengthening responsible business practices.
Looking Ahead
The Government’s announcement is the beginning of the legislative process, not the end. Consultation will now take place before draft legislation is introduced, providing organisations and industry stakeholders with an opportunity to contribute to the final framework.
Nevertheless, the direction is unmistakable.
Australia is moving towards a modern slavery regime that places greater emphasis on prevention, accountability and demonstrable due diligence.
As Commissioner Chris Evans observed, these reforms represent an opportunity for Australia to once again become a global leader in addressing modern slavery while helping responsible businesses remain competitive in an increasingly demanding global marketplace.
For organisations, the question is no longer whether expectations are changing – but whether they will be ready when they do.