What is the revenue threshold for companies facing criminal liability in Australia?

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Companies with over A$100 Million in Revenue Face Criminal Liability for Modern Slavery

Australian companies with an annual revenue exceeding A$100 million (approximately RM284.95 million) will be subject to criminal liability for modern slavery practices within their supply chains outside of Australia. This significant legal shift aims to hold larger corporations accountable for forced labour and debt bondage, among other forms of modern slavery, that may occur in the production of goods they procure. The proposed legislation also introduces a defence for companies that can demonstrate they have taken reasonable steps to prevent such exploitation.
New Criminal Offence for Supply Chain Slavery

The Australian government is introducing a new criminal offence targeting companies with revenues above A$100 million. This offence will be triggered if these companies fail to prevent modern slavery within their supply chains located outside Australia. This measure signifies a substantial toughening of existing laws, moving beyond reporting requirements to impose direct criminal responsibility.
Defence for Reasonable Steps

Under the proposed legislation, companies will have a defence if they can prove they have implemented reasonable measures to prevent modern slavery within their operations and supply chains. This provision acknowledges the complexity of global supply chains and provides an avenue for companies to demonstrate due diligence and proactive efforts in combating forced labour. The focus is on the company's demonstrable commitment to preventing exploitation.
Introduction of Civil Penalties

In addition to the new criminal liability, Australia will also implement civil penalties for companies failing to meet their current obligations under the existing Modern Slavery Act. This dual approach, combining criminal and civil sanctions, underscores the government's commitment to addressing modern slavery more rigorously. The introduction of civil penalties aims to ensure compliance with existing reporting and due diligence requirements.

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What is the revenue threshold for companies facing criminal liability in Australia?

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