Commonwealth modern slavery regimes are evolving - what Australian employers need to know

Australia’s national approach, which has been in place since 2019 has come under increased scrutiny in recent times for its perceived lack of significant penalties for those found to be in breach of their modern slavery reporting requirements.

Currently, entities with at least AU$100 million annual revenue are required to report how they address exploitation in their supply chain, with statements recorded on a public register by the Australian government.

However, unlike other jurisdictions there are no financial penalties for breaches, only the impact of reputational damage, which has sparked debate in recent years about whether this is a sufficient penalty.

That scrutiny continues as Canada, Australia and the UK have linked up in the last year to create a collaborative approach to compliance across the jurisdictions, with a shared template for international reporting on modern slavery which highlights the most important reporting areas in all three jurisdictions.

For companies with trade and supply chains in three of the main commonwealth countries, it is essential to be aware of the stricter regimes elsewhere and the penalties faced for companies in breach of them.

New Zealand

New Zealand is expected to bring its new modern slavery legislation into force before this November’s general election, after the bill was introduced in February.

The bill covers modern slavery in broad terms, including coerced marriage, trafficking, child labour and forced labour, and has received bipartisan support.

The proposed legislation puts an emphasis on disclosure rather than direct obligations, with a public register of declarations by large companies, eligible under its terms. An company is ‘large’ its annual revenue is over NZ$100m.

Those under the scope of the legislation will be required to report on their processes to identify, address and mitigate incidents of modern slavery discovered in their operational and supply chains, outline how they are remediating these when flagged, and identify training and staff education processes.

New Zealand’s approach largely aligns with Australia’s legislation. However, in New Zealand the sanctions for companies that don’t comply with the requirements could be up to NZ$200,000 (with non-governmental agencies liable for an additional civil penalty of up to three times that amount). Personal liability for senior leaders at firms found to have committed a breach is also included, with named individuals to be included on the modern slavery register for three years.

Under the bill, the government would also be required to produce an annual report on modern slavery investigations and prosecutions, and like the Australian legislation, establish an independent anti-slavery commissioner as part of a process of increasing transparency and accountability.

Canada

Canada introduced its current modern slavery legislation – the Fighting Against Forced Labor and Child Labour in Supply Chains Act – in 2023, with the most recent reporting deadline having passed at the end of May 2026.

Companies, organisations and institutions in Canada come under the supply chain legislation scope if they are listed on a Canadian stock exchange, or they trade in the country and have CA$20 million in assets or C$40 million in annual gross revenue, and employ more than 250 people.

Under the legislation failure to comply with the reporting requirements or breaching the legislation can result in fines of up to $250,000 for companies and their named representatives.  Similar, to New Zealand’s proposed reporting by the government, Public Safety Canada publishes an annual report on breaches and how entities are meeting the regime.

Alongside this, Canada also operates an import ban on goods which have prison, child or labour involvement in their supply chain. Any goods whose production involved that activity – either wholly or in part – is banned from entering Canada, which can impact on manufacturing where one component may fall under the restriction’s scope.

As a result, the Canadian Border Services Agency has the power to examine and seize goods both at the border and once in the country if they suspect their production breached the import restrictions, although there are mechanisms to challenge the decision or to re-export goods previously seized.

What this means for you

Although they vary from country to country, tighter rules around modern slavery disclosures are an increasingly common trend, putting the emphasis on government bodies and large entities to provide appropriate statements to confirm they meet jurisdictional requirements.

As with Canada, the UK and Australia, countries are increasingly drawing on the experiences of other jurisdictions to shape their own legislation.

So it is important that companies have ready access to information about their supply chains to respond to questions from their clients and comply with their respective reporting requirements.

For companies looking to trade in New Zealand or Canada, understanding risks within the supply chain, particularly if procuring resources from high-risk countries, is essential. Conducting a supply chain audit and implementing a modern slavery policy will help mitigate any issues with companies’ supply chains.

It is important for companies to conduct due diligence on potential contractors, and to include provisions within their contracts which give them access to accurate and easily available records that can be used to prepare their modern slavery statements.

Getting expert insight and advice on how best to achieve this is essential, not only to reduce risk of breaching modern slavery legislation in other countries, but in ensuring companies themselves have stronger and more reliable supply chains.