What revenue threshold triggers the new modern slavery law?

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New Criminal Liability for Modern Slavery Introduced for Large Companies in Australia

Australia is set to introduce new legislation that will make large companies criminally liable for modern slavery within their supply chains. This move aims to strengthen existing laws and respond to international pressure regarding the import of goods produced through forced labour. Companies with revenues exceeding AUD$100 million (approximately RM284.95 million) will be specifically targeted by these enhanced penalties.
Criminal Offence for Supply Chain Slavery

Under the proposed changes, companies with annual revenues surpassing AUD$100 million will face criminal charges if modern slavery, encompassing forced labour and debt bondage, is found within their supply chains operating outside of Australia. This new criminal offence signifies a significant tightening of regulations, moving beyond previous reporting requirements. Attorney-General Michelle Rowland stated that Australians expect products they purchase not to be manufactured through modern slavery, underscoring the public sentiment driving this legislative action.
Defence Based on Reasonable Steps

A key provision within the new legislation is the establishment of a defence for companies. If a company can demonstrate that it has taken all reasonable steps to prevent modern slavery within its operations and supply chains, it will be shielded from liability. This "reasonable steps" defence incentivises proactive measures and due diligence by businesses to identify and mitigate risks associated with forced labour.
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 of criminal and civil sanctions aims to ensure compliance and encourage greater accountability across the corporate sector. The Australian Anti-Slavery Commissioner, Chris Evans, has noted that while Australia was once a leader in anti-slavery legislation, it had fallen behind other nations that have adopted more stringent measures.

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What revenue threshold triggers the new modern slavery law?

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