News from the Institute for International Trade

Due Diligence Legislation and Policies: Australia’s TransparencyBased Approach to Addressing Risks of Modern Slavery in Supply Chains

POLICY BRIEF No.27 - Dr Legesse Mengie is a sessional lecturer and researcher at the University of Adelaide and University of South Australia. Australia’s Modern Slavery Act, enacted in 2018, represents a transparency-based approach to combating modern slavery in supply chains. Unlike its counterparts in Europe and North America, the Act lacks penalties for non-compliance and imposes no specific positive due diligence obligations beyond reporting requirements. However, recent studies and the government’s statutory review highlight significant compliance challenges, suggesting that substantial reforms to the current due diligence system are imminent. These reforms are critical for aligning Australia's legislation with international best practices while balancing the need to protect human rights and sustain corporate competitiveness

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