Expert Guide on Human Rights and Forced Labour in Australia

Australia is a federation (officially known as the Commonwealth of Australia) consisting of six States and two major Territories.

The key legislation in Australia addressing modern slavery risks in supply chains and operations that applies nationally to large business and other entities based, or operating, in Australia is the Modern Slavery Act 2018 (Cth) (Modern Slavery Act).  The legislation captures the following entities:

• an Australian entity or an entity that carries on business in Australia with a consolidated annual revenue of at least AUD$100 million over its reporting period.  
• the Australian Government on behalf of non-corporate Commonwealth entities.
• a corporate Commonwealth entity or a Commonwealth company (a Commonwealth company/entity is not a private entity such as, for example, an Australian company or partnership formed in Australia which would be captured within the meaning of an Australian entity) that has a consolidated annual revenue of at least AU$100M over its reporting period.

As to whether an entity is carrying on business in Australia, this is generally speaking, when an entity has a place of business in Australia or in a State or Territory in Australia but a specific of circumstances would require analysis to determine whether an entity carries on business in Australia.

In relation to human rights legislation more generally at a Commonwealth level, there is currently no “Human Rights Act” at a national level.  There is a Human Rights Commission at a Commonwealth level which is established by the Australian Human Rights Commission Act 1986 (Cth) and its functions are primarily directed at inquiries into an act or practice relating to human rights.

The Modern Slavery Act 2018 (NSW) (NSW Modern Slavery Act) does not apply to commercial organisations in New South Wales.

As at the date of the preparation of this guide, there is presently no other legislation in other States or Territories in Australia addressing modern slavery in supply chains for either commercial organisations or government entities.  However, certain government policies such as procurement policies may require certain suppliers to take certain actions in relation to modern slavery.  By way of example, the Queensland Supplier Code of Conduct 2023 requires suppliers to “make all reasonable efforts to ensure that businesses within your supply chain are not benefiting from, engaged in or complicit with, human rights exploitations such as forced or child labour, coercion, or any type of modern slavery practice as defined in the Modern Slavery Act 2018 (Cth).”

This area of law is evolving in Australia. As can be seen above in relation to the Modern Slavery Act, the legislative requirements are currently under review. Other jurisdictions within Australia may also potentially strengthen their modern slavery requirements. For example, the Australian Capital Territory Government previously announced that it would require voluntary reporting (under whole of government reporting) in accordance with the Modern Slavery Act.

In relation to human rights generally at a State and Territory level, Article 8 of the International Covenant on Civil and Political Rights is reflected in the Australian Capital Territory, Queensland and Victorian human rights Acts/Charters which applies to public entities/public authorities (section 18 of the Human Rights Act 2019 (Qld), section 26 of the Human Rights Act 2004 (ACT) and section 11 of the Charter of Human Rights and Responsibilities Act 2006 (Vic)). The area of law in relation to human rights generally at a State and Territory level is also evolving in Australia, and any specific queries regarding human rights will require a review of the legislative requirements at the relevant point in time.

The Modern Slavery Act applies across all sectors and does not specify specific rules for an individual sector.  

The Modern Slavery Act specifies mandatory criteria for modern slavery statements (see the next question for these specific requirements), which includes a requirement to describe the risk of modern slavery practices.  Naturally, given there are high risks sectors for modern slavery, as a matter of practice, the response to modern slavery risks across different sectors may differ.

The entities captured have reporting obligations relating to modern slavery risks in their domestic and global operations and supply chains and they prepare and submit annual Modern Slavery Statements.

The Australian Government publishes these statements on the Modern Slavery Statements Register.  

The Modern Slavery Statements are provided by single reporting entity, a joint modern slavery statement (covering one or more reporting entities such as a corporate group but all reporting entities need to be consulted) or a Commonwealth Modern Slavery Statement for all non-corporate Commonwealth entities (see the next question).

The Modern Slavery Statements must include the following mandatory criteria:

• the identity of the reporting entity;
• the structure, operations and supply chains of the reporting entity;
• the risks of modern slavery practices in the operations and supply chains of the reporting entity, and
• any entities that the reporting entity owns or controls;
  the actions taken by the reporting entity and any entity that the reporting entity owns or controls, to assess and address those risks;
• how the reporting entity assesses the effectiveness of such actions;
• the process of consultation with any entities the reporting entity owns or controls; and
• any other information that the reporting entity, or the entity giving the statement, considers relevant.

An Australian entity or an entity carrying on business in Australia that is not captured may volunteer to report under the Modern Slavery Act.  

While there is no specific modern slavery legislation Western Australia, there can be consequences for failing to comply with the Modern Slavery Act in relation to performing work for the Western Australian Government.  For example, pursuant to the Procurement Act 2020 (WA) and the Procurement (Debarment of Suppliers) Regulations 2021 (WA), suppliers can be debarred from government work for up to two years if they have failed to comply with modern slavery reporting requirements in the last three years.  

Yes, the Modern Slavery Act applies to the Australian Government and the Australian Government is required to report on behalf of non-corporate Commonwealth entities on an annual basis.  

One of the objects of the NSW Modern Slavery Act is to provide for mandatory reporting of risks of modern slavery occurring in the supply chains of government agencies.  

For example, the NSW Modern Slavery Act requires a State-owned corporation to voluntarily comply with the requirements of the Modern Slavery Act and to make modern slavery statements if they are not already required to do so under the Modern Slavery Act.   The NSW Modern Slavery Act also requires a GSF agency (this is defined broadly and includes any Public Service agency) under the Government Sector Finance Act 2018 (NSW) to include in its annual reporting information, matters relating to modern slavery.

Other legislative requirements in New South Wales also relate to modern slavery.  By way of example, the Local Government Act 1993 (NSW) contains reporting requirements in relation to modern slavery in relation to goods and services procured by local governments.  

The human rights legislation in the Australian Capital Territory, Queensland and  Victoria contains some reporting requirements for government.

For example, the Queensland legislation requires certain public entities to prepare an annual report about human rights complaints received and the Commissioner has reporting obligations in relation to human rights complaints. 

The Modern Slavery Act aims for voluntary compliance and does not contain any offence or civil penalty for non-compliance with the reporting requirement (and prohibits legislative instruments that create an offence or civil penalty).   

See previous question.

There are no criminal, civil or administrative penalties for violations of the Modern Slavery Act.

The Modern Slavery Act seeks to address risks of modern slavery in supply chains.  However, many Australia laws (the specific details and application of which are beyond the scope of this guide) criminalise slavery and related practices (for example, Divisions 270 and 271 of the Criminal Code Act 1995 (Cth)).  The Proceeds of Crime Act 2002 (Cth) also applies to modern slavery offences and operates to deter profit motivated modern slavery offences.

If an entity fails to comply with the Modern Slavery Act, there are no direct sanctions to the entity or its directors/executives.  

Pursuant to the Modern Slavery Act, if an entity fails to submit a modern slavery statement (excluding the Australian Government) the entity may be subjected to a request for explanation as to its failure to comply or a request for remedial action.

The risk for directors and executives is the reputational harm, causing financial consequences, that it may suffer by failing to comply with its requirements pursuant to the Modern Slavery Act. 

A statutory review of the Modern Slavery Act in 2023 made certain recommendations to amend the Modern Slavery Act (Statutory Review).  For example, a recommendation was made to reduce the threshold from AUD$100 million to AUD$50 million.

In December 2024, the Australian Government published its response to the Statutory Review (Response).  The Response agrees in full, part or in-principle to 25 of the 30 recommendations from the Review although none of the recommendations have yet been implemented through legislative amendment.

Some of the key matters addressed in the Response include:

• an undertaking to consult on the potential introduction of penalties in the Modern Slavery Act and to investigate the administration of a proposed penalty framework.
• the  recommendation to reduce the reporting threshold to AUD$50 million has been ”noted” by the Australian Government at this stage. The Government noted that the recommendation will be given further consideration once additional scoping on other key recommendations has progressed.  
• a recommendation in the Statutory Review to add new mandatory reporting criteria has been agreed in principle by the Australian Government.

In relation to human rights, there have been calls to introduce a Commonwealth “Human Rights Act” and in May 2024 a Parliamentary Joint Committee on Human Rights recommended the introduction of legislation to establish an Australian “Human Rights Act”.

There have also been calls in South Australia to introduce human rights legislation.

The Social Development Committee of the Parliament of South Australia delivered a report on 29 April 2025 recommending, amongst other things a “Human Rights Act” in South Australia.