Table of contents
- AI trumps modern slavery in the news cycle
- Why is the Government strengthening the modern slavery laws?
- How will Australia’s modern slavery laws change?
- Anti-Slavery Commissioner welcomes proposed changes but wants more
AI trumps modern slavery in the news cycle
Last week, in the world of workplace relations, the thorny issue of AI and jobs dominated the headlines.
On 15 July 2026, the Prime Minister, Anthony Albanese, announced “Australian Standards for AI” and, more specifically, claimed that AI should not be seen as a threat to good jobs but as an instrument to create them.
Everyone's focus on how the Albanese Government (the Government) is actually going to achieve its lofty objectives for Australia and AI meant that the Attorney-General's announcement, on 16 July 2026, that it will strengthen the Modern Slavery Act 2018 (Cth) (the Act) fell under the radar. Yet, the planned changes are something businesses, especially large businesses with revenue over $100 million, need to know about.
Why is the Government strengthening the modern slavery laws?
According to the Global Slavery Index, an estimated 50 million people are currently living in modern slavery.
At present, modern slavery is a crime under Australian law, including when it happens outside Australia. Despite this, Australia imports US$17.4 billion worth of products each year that are at risk of being made with forced labour. The top 5 products most at risk are electronics, garments, solar panels, textiles and fish.
As modern slavery is a major violation of human rights and has devastating impacts, including depriving victims of their basic freedoms and dignity, the Government has announced that it will “strengthen Australia’s modern slavery laws”.Although Australia has what the Government has described as “a robust legislative framework” and a “world-leading approach to addressing modern slavery”, it has decided to do more.
It turns out that Australia is slipping behind because a growing number of comparable countries that are introducing laws that go beyond transparency and reporting. Instead, they are focusing on concrete action to identify, prevent and mitigate human rights, including modern slavery.
More specifically, these countries are focusing on introducing mandatory human rights due diligence obligations for large businesses. For example, mandatory due diligence laws already exist in the European Union, Germany, France, Norway and Switzerland. They are under consideration in the United Kingdom, Canada, South Korea, Thailand and Indonesia.
As a result, the Government has decided that Australia needs to play catch up.
How will Australia’s modern slavery laws change?
The Government says it will strengthen the Act by introducing a new criminal offence where companies with an annual consolidated revenue over $100 million fail to prevent modern slavery in their supply chains.
Despite this, there will be a defence available if a company can demonstrate they took reasonable steps to prevent modern slavery. This ensures that companies which have adequate processes and procedures in place are protected.
In addition, the Government will introduce civil penalties and associated enforcement powers to address non-compliance with existing obligations under the Act.
The Attorney-General, the Hon Michelle Rowland, said that the Government “will continue to work closely with stakeholders to inform the design of the proposed legislative changes, ensuring we strengthen efforts to combat modern slavery while continuing to support Australian businesses".
The Government will consult on the details of proposed offence and enforcement options so that the changes to the legislation are practical, effective and fit for purpose, including a deferred prosecution agreement scheme and remedies for victims.
Finally, the Government will also provide practical guidance and education initiatives to assist companies to better identify, manage and remediate modern slavery risks in their supply chains.
Anti-Slavery Commissioner welcomes proposed changes but wants more
The Australian Anti-Slavery Commissioner, Chris Evans, has welcomed the Government’s proposed changes calling it “a step towards a better and fairer approach to combatting modern slavery."
Despite this, he added that, when the Act was introduced in 2018, Australia was regarded as a global leader. However, as the Government has been forced to recognise, now “comparable jurisdictions are moving beyond transparency requirements and introducing stronger enforcement mechanisms, due diligence obligations and import controls.”
The Commissioner said that the “introduction of criminal provisions sends the right signal to business that they should be treating modern slavery with the seriousness it deserves”.
However, he would like the Government to go further and introduce reforms that:
- build on the investment already made in due diligence by businesses
- prioritise remedy for victims
- push businesses beyond performative compliance.
It will be interesting to see what the proposed amendments to the Act look like once the Albanese Government, the Office of the Anti-Slavery and the business community complete their "negotiations".
Source: The Attorney-General, The Hon. Michelle Rowland MP, Albanese Government combatting modern slavery [media release], 16 July 2026, accessed 21 July 2026.
Australian Government, Office of the Australian Anti-Slavery Commissioner, Anti-Slavery Commissioner welcomes Government's move to strengthen modern slavery laws [media release], 15 July 2026, accessed 21 July 2026.
Australian Government, Office of the Australian Anti-Slavery Commissioner, Recommendations to strengthen Australia's modern slavery laws (Initial position paper), 30 January 2026, accessed 21 July 2026.