Australia will hold large corporations criminally liable for modern slavery in their supply chains, Attorney-General Mark Dreyfus announced Thursday.
The policy shift introduces direct criminal penalties for companies that fail to prevent forced labor and debt bondage within their operations, marking a significant escalation in the nation's approach to supply-chain ethics.
The US is also nearing the end of its own investigation into alleged forced labor practices in Malaysia, with officials preparing to impose an indicative 10% tariff if findings are confirmed.
The announcement comes weeks after the United States threatened to impose trade tariffs on Australian goods over similar labor concerns.
Washington has been ramping up pressure on trading partners to align with stricter forced-labor standards, using tariff threats as leverage to enforce compliance.
The US is also nearing the end of its own investigation into alleged forced labor practices in Malaysia, with officials preparing to impose an indicative 10% tariff if findings are confirmed.
For multinational corporations, the new Australian framework raises the stakes for supply-chain due diligence.