Australia to criminalize firms for modern slavery failures

The Australian government announced plans on July 16, 2026, to introduce a new criminal offense for large companies that fail to prevent modern slavery in their global supply chains. The proposed reforms, which also include civil penalties, follow a recent U.S. threat to impose tariffs on Australian imports over forced labor concerns.

Attorney General Michelle Rowland said companies with annual consolidated revenue exceeding 100 million Australian dollars, approximately 70 million U.S. dollars, could face criminal charges if they are unable to demonstrate they took reasonable steps to identify and prevent modern slavery, which includes forced labor and debt bondage. Businesses that can show they took such reasonable steps would have a legal defense. The government will also introduce civil penalties and new enforcement powers to address noncompliance with existing reporting obligations under Australia's Modern Slavery Act.

Rowland stated that the changes aim to create a legislative framework with teeth, asserting that Australians expect the products they buy are not made through exploitation. She said the reforms would introduce greater accountability and level the playing field...