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A coalition of more than 100 investors, businesses, unions and advocacy groups has launched a push for the federal government to strengthen Australia’s modern slavery laws, warning that the existing regime has failed to improve conditions for workers and left the country lagging international standards.
In a letter sent to Attorney-General Michelle Rowland, the alliance of 105 signatories called on the government to introduce mandatory due diligence requirements for large companies operating in Australia, shifting the law away from disclosure and towards obligations to identify and address forced labour risks in supply chains.
The intervention comes three years after an independent review of Australia’s Modern Slavery Act found the legislation had “not yet caused meaningful change” for people affected and recommended sweeping reforms.
The review, led by Professor John McMillan, made 30 recommendations including introducing mandatory due diligence obligations for companies. While the Albanese government accepted 25 recommendations in principle in late 2024, none has yet been enacted.
Responsible Investment Association Australasia co-chief executive Estelle Parker said investors increasingly regarded labour exploitation as a financial risk rather than purely an ethical issue.
“Exploitation isn’t a sustainable business model, and investors are pricing that risk in,” Parker said.
“A business model that relies on underpaid workers, weak regulation or illegal activities like modern slavery will [be unlikely to] produce sustainable earnings.”
Modelling from Fair Supply, a supply chain risk intelligence platform, estimates more than 21 per cent of all goods brought into the country last financial year – about $1 in every $5 spent on imports – were linked to supply chains where coercion, debt bondage and other forms of modern slavery are known to occur.
Campaigners say the current framework, introduced in 2018, relies too heavily on reporting requirements and lacks mechanisms to compel companies to prevent exploitation. The signatories include investors representing more than $400 trillion in funds under management, eight national and state unions, and more than 30 civil society organisations from five continents.
Australian Council of Trade Unions president Michele O’Neil said the government should move to implement recommendations, adding that stronger laws would create a level playing field by ensuring businesses that addressed exploitation risks were not disadvantaged against competitors doing less.
“No worker should be forced into dangerous, exploitative work that puts their health and safety at risk,” O’Neil said.
There are an estimated 50 million people globally living in conditions of modern slavery and forced labour, including about 41,000 people in Australia, according to figures cited by the coalition. The groups say stronger laws are needed to ensure companies are required to act when risks are identified rather than simply disclose them in annual statements.
Earlier this year Anti-Slavery Commissioner Chris Evans called for stronger laws amid growing international scrutiny over Australia’s approach to imports linked to forced labour.
The United States has criticised Australia’s failure to prohibit imports produced using forced labour, while the European Union has moved to impose mandatory human rights and environmental due diligence obligations on large businesses as part of its trade framework.
Moe Turaga from Domus 8.7, an agency of the Catholic Archdiocese of Sydney, said survivors had expected Australia’s modern slavery laws to drive stronger change.
“People with lived experience of modern slavery like myself had high hopes,” Turaga said. “I am frustrated we are still not seeing meaningful change to the circumstances of people most at risk.”
Grace Forrest, co-founder and founding director of human rights group Walk Free, which is focused on eradication of modern slavery, said Australia’s laws needed to go beyond transparency requirements.
“There is increasing global momentum to move beyond transparency to accountability,” Forrest said.
Human Rights Law Centre associate legal director Freya Dinshaw said support for reform stretched across sectors.
“From boardrooms to the factory floor, there is clear support for reforming Australia’s modern slavery laws,” Dinshaw said.
Business groups have signalled concerns that reporting obligations would risk diverting attention from practical initiatives that more effectively address the modern slavery risks faced.
