On 30 January 2026, the Office of the Australian Anti‑Slavery Commissioner (OAASC) released its initial position paper outlining recommendations to strengthen Australia’s Modern Slavery Act 2018 (Cth) (MSA).
The recommendations include:
- introducing an obligation on reporting entities to undertake risk-based due diligence to identify and respond to modern slavery risks in their operations and supply chains; and
- implementing a process through which the OAASC can declare that a product, service, or industry carries a high risk of modern slavery.
‘Modern slavery’ refers to the most serious forms of worker exploitation, including forced labour, forced marriage, debt bondage, and human trafficking. The MSA established a national modern slavery reporting requirement, whereby large companies must report on how they assess and address modern slavery risks in their operations and supply chains.
Whether your business is currently required to comply with the MSA or not, you should understand and be prepared for the proposed changes. We anticipate that everyone in the supply chain will be affected.
Introducing an obligation on reporting entities to undertake risk-based due diligence to identify and respond to modern slavery risks in their operations and supply chains
The OAASC recommends that businesses be required to take reasonable measures to (among other things):
- embed due diligence into policies and systems;
- identify and assess modern slavery risks and impacts;
- take action to address risks and impacts, including ceasing, preventing, or mitigating risks and impacts; and
- track the implementation and effectiveness of actions taken.
The OAASC also recommends that it should be responsible for monitoring and investigating compliance.
Introduce a mechanism through which the OAASC can declare that a product, service, or industry is high‑risk
By its second recommendation, the OAASC has sought to address concerns from the Australian Government’s 2023 review, which found that many businesses were not adequately identifying or describing modern slavery risks in their statements.
It recommends that reporting entities also be required to have regard to each declaration when carrying out their due diligence obligations, and to report on how they have done so, including describing:
- which declared risks are and are not relevant to the entity (based on their severity and likelihood);
- how the declared risks were taken into account in the due diligence risk assessment and prioritisation process; and
- any steps taken to address relevant declared risks.
The Commissioner believes that by issuing clear high‑risk declarations, it can help businesses better recognise and manage these risks in their due diligence and reporting, including their modern slavery statements.
Possible effect on those in the supply chain
These reforms will affect every business in a supply chain, even if they are not legally required to comply with the MSA — for example, small‑ to medium‑sized freight forwarders, customs brokers, shipping lines, airlines, road transport operators, or manufacturers that supply to larger businesses that are subject to the MSA.
We expect reporting entities will require their suppliers to report on how they manage risks in their supply chains and cease engaging with suppliers that don’t take modern slavery seriously (even if those suppliers aren’t covered by the MSA themselves).
Providing feedback on the 2026 position paper and recommendations
The OAASC is seeking feedback on the recommendations. Interested stakeholders should consider providing their feedback at contact@antislaverycommissioner.gov.au.
Contact us
For advice on all aspects of the MSA reforms, please contact a member of our Transport & Logistics or Corporate & Commercial teams.
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