Modern slavery continues to deeply impact economies worldwide. A 2024 report by the International Labour Organization highlights a disturbing increase in profits from forced labour, which now total an estimated $236bn annually—a 37% jump since 2014.
Additionally, Moody’s data indicates a significant rise in human trafficking incidents globally, with a marked 46% increase in Australia from 2022 to 2023. The urgency to address these human rights abuses has never been clearer, according to a recent post by Moody’s.
In response, Australian organisations are legally mandated to scrutinise their supply chains for any signs of modern slavery. This requirement stems from Australia’s Modern Slavery Act, specifically targeting firms with a yearly revenue exceeding AU$100m. The 2024 amendment to this act introduced the Australian Anti-Slavery Commissioner, a role designed to bolster the country’s efforts against this scourge by enhancing transparency and accountability, and ensuring protection for victims.
The introduction of the Australian Anti-Slavery Commissioner through the 2023 Modern Slavery Amendment Bill signifies a crucial step forward. This role is not only a support system for victims but also a pivotal element in aiding businesses to refine their supply chain assessments. The heightened focus on due diligence requirements signifies a shift towards more rigorous examinations of suppliers and subcontractors, aiming to uncover and mitigate hidden risks.
The enactment of the new legislation anticipates a series of changes for companies supplying to the Commonwealth. These organisations are now expected to gear up for in-depth audits and foster increased engagement with governmental bodies concerning their anti-slavery measures. Furthermore, the collaboration between New South Wales and Commonwealth Anti-slavery Commissioners underscores a unified and robust approach to enforce these stringent regulations.
The establishment of the Commissioner’s role and the subsequent legislative amendments carry extensive implications for all relevant Australian entities. Following a 2023 public review, the government is contemplating reducing the revenue threshold for compliance to AU$50m, potentially increasing the number of businesses needing to comply. This move could significantly broaden the scope of transparency in corporate efforts against modern slavery.
Australian companies must now enhance their due diligence practices to identify and mitigate risks effectively. The obligations extend to ensuring suppliers adhere to stringent practices, conducting risk assessments, and maintaining compliance with the Modern Slavery Act. Moreover, companies must implement robust risk mitigation measures to prevent and address any incidents of modern slavery within their operations.
Modern slavery is a global issue, and addressing it effectively requires a harmonized approach to legislation and corporate responsibility. The Australian Modern Slavery Act aligns with international standards, promoting cooperation and consistency across borders. This ensures that businesses, especially those operating internationally, remain committed to upholding human rights.
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