On 21 July 2025, the Australian Government released a Consultation Paper proposing reforms to Australia’s Modern Slavery Act 2018 (Cth) (Modern Slavery Act). The proposed reforms are designed to strengthen Australia’s legislative framework by enhancing transparency, improving compliance and enforcement mechanisms, and providing clearer guidance for entities addressing modern slavery risks in their operations and supply chains.
The Consultation Paper follows the statutory review of the Modern Slavery Act (Modern Slavery Act Review) which highlighted the need for more robust measures to ensure meaningful action and accountability from reporting entities. In December 2024, the Australian Government responded to the Modern Slavery Act Review, agreeing in part or in full to 25 of the 30 recommendations. See our article in our Sustainability Insights Issue 7 for further details on the Modern Slavery Act Review and the government’s response.
The proposed changes in the current Consultation Paper address 6 of the 30 recommendations from the Modern Slavery Act Review, including clarifying and expanding the mandatory reporting criteria, introducing new compliance and enforcement powers (including civil penalties) and streamlining reporting processes for both mandatory and voluntary reporters. The Consultation Paper is the progression of the first stream of proposed reforms. Targeted consultation on other recommendations, including declarations of high-risk matters and obligations for due diligence systems, will be separately progressed.
The release of the Consultation Paper signals the government’s commitment to progressing the recommendations of the Modern Slavery Act Review as a priority in its new term. If implemented, these proposed reforms will have wide-ranging implications for how businesses identify, address and report on modern slavery risks, particularly for those with complex supply chains or group structures.
Below, we set out our key takeaways from the Consultation Paper.
Key Takeaways:
Expanded and clarified reporting criteria: The Consultation Paper proposes new and refined mandatory reporting requirements under s 16(1) of the Modern Slavery Act, including new criteria for reporting on grievance mechanisms, internal remediation processes, and a stronger focus on due diligence and the effectiveness of actions taken to identify, assess and address modern slavery risks.
Stronger compliance and enforcement framework: The Consultation Paper proposes introducing civil penalties for non-compliance with the Modern Slavery Act (such as failing to submit a statement or providing false or misleading information) and expanding the regulator’s powers relating to information-gathering capabilities, infringement notices and enforceable undertakings.
Corporate group reporting model: A new approach is proposed to replace joint reporting under s 14 of the Modern Slavery Act, requiring parent entities to report on behalf of their entire corporate group, with exemptions available for nominee or subsidiary reporting entities in certain circumstances.
Streamlined voluntary reporting processes: The Consultation Paper proposes amendments to provide entities reporting on a voluntary basis with greater flexibility to revoke their reporting status at any time and require all entities to notify the regulator if they cease to be a reporting entity, ensuring improved oversight and up-to-date records.
Submissions open: The government is actively encouraging stakeholders to provide feedback on the proposed reforms and questions included in the Consultation Paper by Monday 1 September 2025, via the government’s Consultation hub.
Further targeted consultation: The other 19 recommendations of the Modern Slavery Act Review that the Australian Government has agreed to will be progressed through targeted consultations with relevant specialists in public and private sectors. These will seek to address the role of the Australian Anti-Slavery Commissioner, a model for written declarations of high-risk matters, due diligence obligations and the development of tailored guidance for small and medium-sized enterprises to support compliance and best practice.
Responses to the Consultation Paper will inform future government consideration of potential measures to strengthen the Modern Slavery Act. Interested businesses and other stakeholders should consider providing their input to the consultation process.
We will be monitoring the consultation process closely. Reach out to our team if you would like to learn more.