Time for action as Australia considers mandatory due diligence on modern slavery

The current review of Australia’s Modern Slavery Act presents a crucial opportunity to introduce mandatory due diligence and prevent exploitation in supply chains linked to the country’s economy.

The new report Overdue Diligence outlines why reform is essential to strengthen Australia’s legal framework and drive effective action to address forced labour.

Introducing a due diligence requirement will better protect people from exploitation while ensuring Australian businesses remain competitive in a rapidly changing global regulatory landscape.

With industry consultations on the Modern Slavery Act review underway, Australia has a clear opportunity to improve its response to modern slavery.

Global expectations are shifting from transparency toward accountability, and our laws should reflect this.

Mandatory due diligence is not only a regulatory shift but a practical tool for stronger governance, clearer risk visibility, and more resilient supply chains.

Clear and consistent legal requirements would help businesses:

Embedding due diligence into core business practice positions Australian companies to compete in markets where responsible production is becoming a baseline expectation.

When introduced 8 years ago, Australia’s Modern Slavery Act marked a significant step forward by requiring large companies to report on modern slavery risks across operations and supply chains.

However, after almost a decade, evidence shows transparency alone has not driven meaningful reduction in harm or consistent action across the private sector.

Many businesses still struggle to identify specific risks, while fewer implement effective measures to prevent or address exploitation.

Without a clear obligation to act, reporting often becomes a compliance exercise rather than a driver of systemic.

Mandatory due diligence requires businesses to actively manage the risk of modern slavery across their operations and supply chains.

An effective framework requires companies to identify and assess risk, and take action to prevent harm, monitor effectiveness, ensure access to remedy for those affected and report on progress.

This approach aligns with emerging global standards while embedding prevention into governance, procurement, and investment decisions.

Major trading partners are rapidly introducing mandatory due diligence requirements through regulation, procurement rules, and market expectations.

Jurisdictions including Thailand, Indonesia, and the European Union are reshaping the baseline for responsible business conduct in international trade.

Without comparable reform, Australian companies risk competitive disadvantage, restricted market access, and growing compliance complexity across multiple jurisdictions.

Consultations on the Modern Slavery Act review are underway this month, creating an important window for businesses to shape the future regulatory framework.

Private sector engagement will influence whether reform delivers practical prevention, regulatory clarity, and alignment with global trade expectations.

By demonstrating support for due diligence reforms in these public fora and in their sector, businesses would help secure consistent standards, reduce long-term risk, and reinforce Australia’s reputation for responsible commerce.

Engagement at this stage will shape future competitiveness, market access, investor confidence, and supply chain resilience for Australian companies.

Acting early positions Australian business to meet rising expectations while reducing exposure to forced labour risk.