Australia’s Albanese government is moving to toughen modern slavery laws with plans to introduce a new criminal offense after the United States threatened a punishing 12.5 percent Section 301 tariff on its imports for failing to block goods made with forced labor.
Attorney General Michelle Rowland said Thursday that companies with annual consolidated revenue of more than 100 million Australian dollars, or nearly $70 million, could face criminal charges if they are unable to demonstrate they took reasonable steps to prevent modern slavery in their supply chains.
The government also plans to introduce civil penalties and enforcement powers to address corporate noncompliance with obligations under Australia’s existing Modern Slavery Act, which requires large companies to report annually on modern slavery risks in their operations and supply chains and the actions they take to address them.
“Australians rightly expect that the products they buy are not made on the back of modern slavery, which is why the Albanese government is delivering a legislative framework with teeth,” Rowland said in a statement. “The proposed changes will introduce greater accountability, leveling the playing field for the majority of Australian businesses already doing the right thing.”
In its Section 301 findings, which covered 59 countries and the European Union, the Office of the United States Trade Representative said Australia had “failed to impose and effectively enforce a forced labor import prohibition” and that its acts, policies and practices were “unreasonable” and burdened or restricted U.S. commerce.
Canberra rejected the characterization, saying the country had “robust, comprehensive and world-leading legislation” that addresses modern slavery and that any tariffs on Australian exports to the United States were “unjustified” and inconsistent with the Australia-U.S. Free Trade Agreement.
Last month, however, the Uyghur Human Rights Project published a report warning that countries like Australia and Japan are increasingly exposed to forced labor goods because high-risk shipments are being redirected to markets without import controls like the Uyghur Forced Labor Prevention Act in the United States and the EU’s forthcoming Forced Labour Regulation. According to 2024 trade data, Australia imported roughly $4.9 billion in goods from high-risk sectors linked to Uyghur forced labor, including cotton textiles and apparel, solar supply chain inputs, aluminum and chemical products.
“Forced labor does not disappear when one market tries to close its doors,” said report author Elijah Pockell-Wilson. “Without stronger import controls, Australia and Japan risk becoming destination markets for goods made with Uyghur forced labor that other countries are working to block.”
Previous efforts to ban forced labor imports in Australia, particularly from China’s Xinjiang Uyghur Autonomous Region, where reports of repression against ethnic Muslims are widespread, have stalled amid concerns over enforcement and implementation.
Rowland said any reforms will be paired with practical guidance and education initiatives to help companies better identify, manage and remediate modern slavery risks in their supply chains. Upcoming consultations will also shape the details of the proposed offense and enforcement options to ensure the reforms are “practical, effective and fit for purpose,” including whether to use a deferred prosecution agreement system and provide remedies for victims.
“We will continue to work closely with stakeholders to inform the design of the proposed legislative changes, ensuring we strengthen efforts to combat modern slavery while continuing to support Australian businesses,” Rowland added.
