Why is Australia introducing criminal liability for modern slavery in supply chains?

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Australia Introduces Criminal Liability for Modern Slavery in Supply Chains Due to Evolving Global Standards and Trade Pressures

Australia is enacting criminal liability for major corporations concerning modern slavery within their supply chains. This significant policy shift, affecting companies with revenues exceeding Aus$100 million, introduces new criminal offences for failing to prevent forced labour and debt bondage in overseas supply chains. The move reflects a growing international expectation that consumer products should not be produced through exploitative practices, a sentiment echoed by Attorney General Michelle Rowland.
Increased International Scrutiny and Trade Implications

The timing of these legislative changes is closely linked to external pressures, particularly from the United States. Australia's embassy had previously lodged protests against the US Trade Representative's decision to list Australia among countries potentially subject to trade tariffs. This action was a consequence of the US perceiving Australia as not sufficiently preventing the import of goods manufactured through forced labour. This international trade dynamic has evidently prompted Australia to reassess and strengthen its domestic regulations.
Addressing Falling Behind Global Standards

Australia's commitment to combating modern slavery is also being driven by a recognition that its existing framework has become insufficient compared to international benchmarks. The Australian Anti-Slavery Commissioner, Chris Evans, has noted that Australia, once a leader in anti-slavery legislation, has fallen behind as other nations have adopted more stringent measures. The current laws, enacted eight years prior, are now considered by experts, such as Justine Nolan, Director of the Australian Human Rights Institute, to be not fit for their intended purpose, necessitating a more robust approach.
Strengthening Corporate Accountability and Deterrence

The introduction of criminal liability aims to compel companies to take more proactive and substantial measures to prevent modern slavery. While companies can avail themselves of a defence by demonstrating they have taken reasonable steps to avert slavery within their operations, the overarching goal is to foster greater accountability. In addition to criminal penalties, civil penalties will also be implemented for non-compliance with existing obligations under the Modern Slavery Act, thereby creating a more comprehensive deterrent against modern slavery practices.

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Why is Australia introducing criminal liability for modern slavery in supply chains?

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