Australia will make large companies criminally liable for modern slavery in their supply chains, Attorney General Michelle Rowland announced, following a US threat of trade tariffs over the issue.
What are the new laws?
The new laws will introduce a criminal offence for companies with revenue over Aus$100 million that fail to prevent modern slavery, including forced labour and debt bondage, in their supply chains outside Australia. Companies that can show they took reasonable steps to prevent slavery will have a defence under the proposed new law. Australia will also introduce civil penalties for companies not meeting existing obligations under the Modern Slavery Act.
What prompted these changes?
The changes come weeks after the United States threatened to impose a 12.5 percent tariff on Australia for failing to stop the import of goods made with forced labour. Australia's embassy protested the US Trade Representative's listing, arguing there was no credible basis for the claim that Australia's rules were insufficient.
How effective are Australia's current anti-slavery measures?
Around 4,000 Australian companies report annually on steps taken to prevent forced labour in their supply chains. Last year, the Australian Federal Police investigated 280 reports of modern slavery and human trafficking. Australian Anti-Slavery Commissioner Chris Evans noted that Australia, once a world leader in anti-slavery rules, has fallen behind as other countries have taken tougher action.
What do experts say about the new measures?
Justine Nolan, Director of the Australian Human Rights Institute, said the changes were significant and would force companies to take action to prevent slavery. She also suggested there was likely a correlation between the timing of the changes and the US government's tariff threat.
