On Tuesday 10 February 2026, the Federal Anti-Slavery Commissioner (“Commissioner”) released a position paper on the recommendations to strengthen the Modern Slavery Act 2018 (Cth) (“Act”).
This position paper follows the release of the recommendations from the statutory review of the Act in May 2023 (“Statutory Review”) and the subsequent response from the Federal Government in December 2024. The Federal Government is currently undertaking targeted consultations on particular amendments to the Act.
This position paper outlines the Commissioner’s initial recommendations to amend the Act. The Commissioner is seeking feedback on the position paper which will inform the final recommendations provided to the Government.
The Commissioner recommends that the Act be amended to introduce:
1. Mandatory risk based modern slavery due diligence obligations for reporting entities:
A criticism of the Act as it stands is that it does not require reporting entities to undertake due diligence to assess and address modern slavery risks. The only requirement is that reporting entities need to report on due diligence undertaken.
The Commissioner has proposed the introduction of mandatory modern slavery due diligence which is aligned with the UNGP’s and the OECD Guidelines for due diligence. Additionally, the Commissioner has proposed proportionality mechanisms to ensure that undue burden is not placed on SME’s who are captured as reporting entities. The Commissioner has recommended that if these new requirements are introduced that there be a 2-year phase in period with a graduated approach to enforcement and further guidance prepared to assist reporting entities in understanding what is “reasonable” modern slavery due diligence.
The Statutory Review separately recommended that penalties be introduced for non-compliance with the Act which would include failure to comply with any due diligence requirements introduced.
2. A mechanism for the Commissioner to declare that a product, service or industry carries a high risk of modern slavery, requiring reporting entities to undertake due diligence on these declared risks and report on how they have addressed salient declared risks:
A key finding of the Statutory Review was that reporting entities are failing to identify known modern slavery risks in their operations and supply chains.
The Commissioner has recommended that there be an ability for the Commissioner to make a declaration that a particular product, service or industry is high risk, with accompanying requirements for reporting entities to consider these declared high risk matters and report on (a) whether they source from or operate within these high risk matters and (b) what actions they are undertaking to address these high risk matters.
Overall, the Commissioner’s recommendations are focused on improving the due diligence requirements of the Act in an effort to move modern slavery statements beyond a compliance exercise into a mechanism for outlining risk focused due diligence to assess and mitigate known risks. Cowell Clarke’s ESG Team can assist you in understanding the current due diligence requirements and any changes you may need to make to your current due diligence methodology to meet the proposed amendments to the Act. Please reach out if you have any queries.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.