Regulation & International Instruments
Australian Modern Slavery Act
Australian legislation requiring large entities to report annually on how they identify and address modern slavery risks in their operations and supply chains.
Expert review openNo editor-accepted expert review yetDefinition
The Commonwealth Modern Slavery Act 2018, in force since 1 January 2019, which established a national modern slavery reporting requirement for entities in the Australian market with annual consolidated revenue of at least A$100 million. Covered entities must prepare annual Modern Slavery Statements describing actions to assess and address modern slavery risks in operations and supply chains, published on a public register.
References
In force 1 Jan 2019; A$100m threshold; statement requirements and register; statutory review and government response (25 of 30 recommendations accepted).
Transparency-based regime; section 16 mandatory criteria; board approval; supplier implications.
Overview
What it means
The Act is a transparency regime: it does not prescribe due diligence processes or (currently) penalise non-reporting, but relies on public scrutiny, board approval of statements, and reputational pressure. "Modern slavery" covers offences including slavery, servitude, forced labour, debt bondage and deceptive recruitment.
How it is used
Statements must address mandatory criteria (structure, operations and supply chains, risks, actions, effectiveness, consultation) and are used by investors, customers and civil society to compare corporate practice.
A 2023 statutory review made 30 recommendations — including penalties, lowering the threshold to A$50 million and requiring due diligence systems — of which the government accepted 25 in full, part or principle in late 2024; legislative strengthening is under way.
Why it matters
The Act anchors modern slavery risk management in Australian business practice and influences global supply-chain expectations, complementing the UK Modern Slavery Act and foreshadowing mandatory due diligence regimes elsewhere.
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