The Australian Government has initiated consultation on proposed reforms to strengthen the Modern Slavery Act 2018 (Cth) following a statutory review of its first three years of operation. The review, tabled in May 2023, identified the Act's positive impact in raising awareness of modern slavery risks but highlighted a number of areas requiring improvement. The Government's response, released in December 2024, endorsed 25 of the review's 30 recommendations, either fully, in part or in principle, and outlined a phased approach to implementing any changes.
The Government is progressing its modern slavery reform agenda in phases, commencing with consultation in two streams – Stream A (through the current public consultation process which commenced on 21 July 2025 with the release of the consultation paper 'Strengthening the Modern Slavery Act') and Stream B (targeted consultations involving specialists from government, business and non-government sectors on complex policy issues, such as developing a model for written declarations of high-risk matters and enhancing due diligence requirements). Subject to the outcomes from these consultation processes (Phase 1), the Government has foreshadowed legislative reforms (Phase 2) and updates to guidance materials and administrative processes (Phase 3).
The key reforms under consideration as part of the current consultation process include:
1. Mandatory reporting criteria
Refining, consolidating and expanding the mandatory reporting criteria to increase clarity and simplicity. This may include requiring reporting entities to identify owned or controlled entities (and describe the process of consultation with such entities in preparing a modern slavery statement), to report on grievance mechanisms and to report on remediation processes and actions. While the core reporting criteria are proposed to remain in the Act, additional matters relating to the criteria may be addressed in delegated legislation.
2. Compliance and enforcement powers
Enhanced regulatory powers, including enforceable undertakings, infringement notices, redaction powers, broader information gathering powers and civil penalty orders, to ensure a proportionate response to non-compliance and to promote a level playing field among reporting entities.
3. Penalties for non-compliance
The introduction of penalties for failing to submit a modern slavery statement, providing false or misleading information or failing to comply with a request for remedial action, noting the Act does not currently provide penalties for non-compliance with the mandatory reporting requirements.
4. Joint reporting
In response to feedback about challenges with joint reporting procedures, whether a system of corporate group reporting may be introduced so that each corporate group is covered by a single modern slavery statement unless a relevant exemption applies.
5. Voluntary reporting
Streamlining reporting for voluntary entities including to allow such entities to revoke their status as a voluntary reporting entity at any time by providing notice.
6. Cessation of reporting entity status
Improving oversight of reporting entities by requiring notification to the regulator when an entity ceases to be a reporting entity, such notification to be provided within 6 months following the end of the reporting period and to include an explanation as to why the entity will no longer be reporting under the Act.
Stakeholders are encouraged to participate in the consultation process, which remains open until 1 September 2025. Feedback will inform the final design of legislative and administrative reforms which will be pivotal in driving further action by Australian businesses to address modern slavery in global operations and supply chains.
