Australian companies to face fines and criminal action if they fail to prevent modern slavery

Australia is finally adding enforcement to its modern slavery prevention law. After eight years of toothless compliance, the government will now impose criminal penalties and fines on large companies—those with annual revenue over one hundred million Australian dollars—that fail to prevent exploitation in their supply chains. The catalyst appears to be U.S. pressure: last month, the Trump administration threatened tariffs of up to twelve point five percent on sixty countries, including Australia, over inadequate action on forced labor. Per The Conversation Australia, the current law requires companies to report on slavery risks but imposes no penalties; an estimated forty-one thousand people are trapped in modern slavery in Australia today. Companies can defend themselves by showing reasonable efforts to prevent slavery, but the specifics—including fine amounts—are still being worked out through consultation.

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