By Georgia Davis, Senior Associate and Luke Geary, Partner
For anyone unfamiliar with the Modern Slavery Act 2018 (Cth) (MSA), it is the first law in Australia compelling big businesses (including the Commonwealth government) to address Modern Slavery in a way that they were never obligated to before. The MSA requires any entity that carries on business in Australia with annual consolidated revenue of at least $100 million to provide an annual statement under the legislation. Whilst the Government considered lowering this reporting threshold recently, it decided against this. The statement must be submitted to the Department of Attorney General for publication and, among addressing other mandatory criteria, must describe the risks of Modern Slavery in the entity’s own operations and supply chains (and those entities it owns/controls), and what action the entity is taking in response to those risks. In case you missed that word “publication”, yes, a reporting entity’s statement is published on the internet for peers, stakeholders, employees, investors, shareholders, the media and civil society to see.
This legislation is targeted at addressing a serious human rights issue impacting the lives of vulnerable people all over the world. Modern Slavery is a term used to describe only the most serious forms of exploitation including practices like human trafficking, slavery, servitude, forced labour, debt bondage, forced marriage and the worst forms of child labour. The nature and prevalence of Modern Slavery (estimated 50 million victims worldwide) means that every entity faces a real risk that it is present in their own operations and/or supply chains.
On 11 June 2024 the Modern Slavery Amendment (Australian Anti-Slavery Commissioner) Act 2023 (Cth) received royal assent (ASC Act). The ASC Act established Australia’s first Commonwealth Anti-Slavery Commissioner. The Commonwealth Commissioner has joined the existing NSW Anti-Slavery Commissioner in Australia’s fight against these heinous crimes.
It is hoped the Commonwealth Anti-Slavery Commissioner will further strengthen Australia’s efforts by providing an independent pillar to the current response to Modern Slavery. The Commonwealth Commissioner is tasked with 15 functions under the ASC Act, some of which include promoting compliance with the MSA, supporting businesses in addressing their modern slavery risks and supporting victims of modern slavery. In July 2025, the new Commissioner wrote a letter to professional firms in Australia raising concerns about non-compliance with the MSA, calling for firms to remind clients of their obligations in this space, and alerting everyone to the fact that the Attorney-General’s department is progressing work to enhance data matching capabilities to detect failed compliance.
We continue to watch the movements of the new Commissioner carefully, especially for any endorsement of legislative amendments of the MSA (discussed below).
Migrant workers are hugely overrepresented in terms of victims of modern slavery. Migrant workers are far less likely to speak out about exploitation because of a fear they will lose their job, visa status and ability to reside in the country. It is obvious that this can create a colossal power imbalance and invisible trap for these workers. This situation feeds a vicious cycle where exploited workers who speak up are forced to return to their home country with no money, and another migrant worker simply takes their place.
Australia’s new Workplace Justice Visa enables people who have experienced exploitation to pursue various forms of legal action without losing their right to live in Australia. It is a free visa and can be applied for online.
Of additional key relevance to migrant workers is the ongoing Inquiry into Modern Slavery Risks faced by Temporary Migrant Workers in Rural and Regional New South Wales being held by the New South Wales Parliament. Several hearings have been held that are available online for viewing, and we eagerly await the final report.
In March 2023, a 3-year legislative review report regarding the MSA was tabled in the Commonewalth Parliament. The report, by Professor John McMillan AO, made 30 separate recommendations for change. On 2 December 2024, the Commonwealth Government agreed or agreed in principle to 25 of those 30 recommendations. In July 2025, the Government commenced a consultation process on some of those recommendations, which is a helpful indicator of which areas of change there might be a focus on.
The headliner for most entities is that the Government is consulting on the introduction of civil penalties for non-compliance with the MSA. These may be a consequence of failing to submit a statement, providing false or misleading information, or failing to comply with a request for remedial action. The Government is also consulting on a range of other increased non-compliance actions such as the issuing of infringement notices and powers to request information from entities. Whilst it is proposed there would be a transition period before penalty provisions take effect, it is best to take steps now to ensure your entity is compliant with the MSA.
Further consultation is occurring around amendments to the mandatory reporting criteria under the MSA. Some of the new criteria being considered are a requirement to report on grievance mechanisms, actions to remediate incidents, staff training and internal policies. There are also discussions regarding consolidating or providing clarity around existing criteria. The Government is considering technical legal amendments that will enable the criteria to be amended more easily in future for flexibility.
Worth noting for reputational reasons is that the government is also considering a procedure for receipt and investigation of complaints from the public regarding reporting entities. Also to note there is consultation occurring relevant to joint reporting, voluntary reporting and ceasing to be a reporting entity. If any of these are relevant to your entity, we suggest you make further enquiries.
Separately, a more targeted consultation process (different to the general consultation process detailed above) will focus on the creation of a written declaration of region, location, industry, product, supplier or supply chains that carry high risks. This is particularly key in a scenario where both the European Union and the United States of America have legislative instruments that block the import of particular goods where they are suspected to have links to forced labour. With no equivalent law in Australia, we face risks that we could become a dumping ground for goods that have been turned away from jurisdictions with these extra protections in place. The creation of such a “blacklist” may be an incentive for Australian business to cease or more carefully examine any involvement they have with anything on that list – effectively a softer approach to the import blocks and bans occurring overseas. Whether this incremental step is an indication that such import banning laws may be coming to our shores one day remains to be seen.
The effective ‘race to the top’ that seems to be occurring internationally regarding enacting sufficient laws may indeed be replicated domestically around compliance with laws, so entities need to ensure they’re up to date on potential changes and do not fall behind peers or the expectations of regulators, law enforcement, shareholders, civil society and the media.
If you would like further information or have any queries regarding other matters, please do not hesitate to contact:
