Australia is intensifying debate over strengthening its Modern Slavery Act with fresh proposals that could require businesses to conduct mandatory risk-based due diligence to combat exploitation in domestic and global supply chains.

The Office of the Australian Anti-Slavery Commissioner, in a newly released position paper, has recommended that large reporting entities be obliged not just to disclose modern slavery risks but to take proportionate and enforceable action to identify, prevent and address those risks.

This recommendation arrives as the federal government begins targeted consultations on reforming the Modern Slavery Act to embed stronger compliance mechanisms.

Under the existing framework, companies with annual consolidated revenue above one hundred million Australian dollars must produce annual modern slavery statements detailing actions taken to assess and address risks in their operations and supply chains.

Critics and reform advocates say that this transparency-only approach has yielded limited substantive impact on the conditions faced by vulnerable workers, leaving action largely voluntary and inconsistent across sectors.

The commissioner’s paper proposes that entities be required to consider evidence-led, risk-based declarations of high-risk industries, products or services issued by the office as a core component of their due diligence and reporting processes.

This would elevate accountability and align Australia’s approach more closely with emerging global norms.

The government’s statutory review of the Modern Slavery Act and its response have already set the stage for significant changes, with authorities agreeing in principle to introduce penalties for non-compliance and to expand reporting criteria.

Mandatory due diligence is among the reforms under consultation, alongside enhanced enforcement powers, declarations of high-risk matters and adjustments to current reporting frameworks.

Stakeholder engagement sessions are underway, with feedback expected to inform final policy design later this year.

Supporters of reform argue that mandatory due diligence will push businesses beyond “box-ticking” disclosures to meaningful action, including deeper analysis of high-risk supply chains and concrete mitigation strategies.

They also note that international counterparts, particularly in Europe and other advanced jurisdictions, have already implemented human rights due diligence legislation, placing pressure on Australia to maintain competitive and ethical standards.

Failure to act, some analysts warn, risks entrenching exploitation and leaving Australian companies at odds with global regulatory trends.

The ongoing consultation signals that lawmakers may soon table draft amendments that incorporate binding due diligence obligations as part of a broader overhaul of modern slavery law in Australia.