Australia: Modern Slavery Criminal Offence Consultation For New 'Failure To Prevent' Law

• Australia has launched a public consultation on a proposed criminal offence for companies failing to prevent modern slavery.
• The planned "failure to prevent" modern slavery offence would apply to companies with over $100 million in annual consolidated revenue.
• Companies could assert a defence if they demonstrate they took reasonable steps to prevent modern slavery in their supply chains.
• The consultation also explores alternative enforcement options, including a deferred prosecution agreement scheme.
• Attorney-General Michelle Rowland stated the reforms aim to strengthen Australia's modern slavery framework and incentivize effective prevention.

For Australian lawyers and compliance officers, this consultation underscores the increasing legal and reputational risks associated with inadequate supply chain oversight.

Australia has initiated a significant public consultation process concerning proposed reforms aimed at strengthening its modern slavery framework and legislative response to exploitative practices within global supply chains. This Australia modern slavery criminal offence consultation, which remains open for submissions until September 25, 2026, signals the government's intent to introduce a new criminal offence. This planned "failure to prevent" modern slavery offence is specifically designed to apply to larger corporations operating in Australia, defined as those with annual consolidated revenues exceeding $100 million.

Attorney-General Michelle Rowland underscored the government's firm stance, describing modern slavery as an "abhorrent practice" that the Albanese Government is resolutely committed to eradicating. She further articulated that the consultation's primary objective is to assist the government in formulating legislation that is both proportionate and fit-for-purpose, effectively addressing modern slavery risks while simultaneously fostering business compliance. The Attorney-General's Department consultation hub website is actively inviting input and insights from interested stakeholders, including businesses, experts, and the wider community, to inform the design and implementation of these crucial measures.

The proposed criminal offence for the failure to prevent modern slavery represents a substantial shift in corporate accountability. Under this new provision, companies could face criminal charges if they do not adequately prevent modern slavery within their operational and supply chain activities. However, the legislative proposal includes a crucial safeguard: a defence will be available to companies that can demonstrate they have adopted reasonable steps to prevent modern slavery in their supply chains. This provision aims to encourage proactive and robust supply chain modern slavery due diligence.

Attorney-General Rowland highlighted that these reforms are intended to "strengthen Australia's robust legislative framework" by creating incentives for businesses to implement effective prevention measures, without imposing overly prescriptive compliance obligations. Furthermore, the consultation is also exploring alternative enforcement mechanisms, potentially including the establishment of a deferred prosecution agreement Australia scheme. Such a scheme could offer a pathway for companies to avoid full prosecution by agreeing to certain conditions and remediation efforts, providing flexibility in enforcement while still ensuring accountability.

This current Australia modern slavery criminal offence consultation is part of a broader, ongoing effort by the federal government to enhance its anti-slavery initiatives. The intent to introduce a new criminal offence targeting high-earning companies for failing to prevent modern slavery in international supply chains was initially flagged by the federal government last July. Further demonstrating this commitment, November 2024 saw the appointment of Chris Evans as Australia's inaugural anti-slavery commissioner, a role designed to spearhead national efforts against modern slavery.

The government also marked a decade since the introduction of modern slavery offences, such as forced marriage, into the Criminal Code by announcing $2.7 million in grants in March 2023 to support victims and organizations working to combat the issue. Additionally, the Victorian bar recognized Fiona McLeod in March 2025 with the 10th Pro Bono Trophy for her extensive pro bono advocacy, which includes significant work on modern slavery, human trafficking, and justice for First Nations communities. For Australian lawyers and compliance officers, this consultation underscores the increasing legal and reputational risks associated with inadequate supply chain oversight. It signals a future where criminal liability for a failure to prevent modern slavery offence could become a reality, necessitating a thorough review and potential overhaul of existing due diligence and compliance programs for entities meeting the revenue threshold.

Australian lawyers and compliance officers should actively engage with or monitor this consultation, as it signals upcoming criminal liability for companies failing to prevent modern slavery in their supply chains, potentially requiring significant changes to due diligence and compliance programs for entities with over $100 million in revenue.

Source: Original reporting via Australasian Lawyer