25 out of 30. Is that good enough?

The Albanese Government has accepted or accepted in principle 25 out of the 30 recommendations from the McMillan Review of the Modern Slavery Act. At first glance, an 83% adoption rate might be a B+—good enough in school—but when we delve into the details, it’s far from sufficient for the vulnerable people this Act is meant to protect.

Read the Government Response

A Long Wait: 557 Days

The Government received the McMillan Review on May 25, 2023, but only responded on December 2, 2024—a delay of 557 days. During this time, an estimated 15 million people worldwide have entered into slavery-like conditions. In Australia, approximately 22 people enter into slavery every day. That means during the 557 days of delay 12,500 people became victims of slavery while the Government took its time to act.

Some Key Takeaways from the Review Response

Let’s look at some key recommendations by the McMillan Review and the Government’s response.

McMillan Recommendation 11: Due Diligence Obligation

The review proposed that the Modern Slavery Act be amended to ensure reporting entities:

  1. Establish a due diligence system meeting the requirements set out under section 25 of the Act.

  2. Detail the activities undertaken in line with that system in their annual modern slavery statements.

This would move the Act beyond mere transparency by requiring businesses to put in place action to reduce modern slavery risks in their supply chains, and to describe them in their statements.

Government Response: While the Government agreed with the importance of due diligence frameworks, it said that the Act already requires entities to describe the actions taken by the reporting entity and any entities it owns or controls to assess and address modern slavery risks, including due diligence and remediation processes. However, as McMillan noted in the Review, If that obligation is not being met, does the answer lie in the due diligence duty being stated more strongly in the Act…?

Rather than committing to strengthen what is already seen as an obligation in the Act, the Government has opted for yet another round of consultations—all while 22 new victims enter slavery daily in Australia. This endless cycle of consultation delays meaningful action, leaving vulnerable people at continued risk.

Due Diligence Matters

Due diligence isn’t just bureaucratic compliance—it’s a proactive tool for identifying, mitigating, and preventing modern slavery risks. As the official Guidance for Reporting Entities states:

Due diligence is important because it helps you understand your entity’s modern slavery risks and the actions you need to take to prevent and mitigate them… Your process should be appropriate to your size, sector, operational context, ownership, and structure.

Without clear, enforceable due diligence obligations, businesses are free to report risks without being required to act on them. This is a fundamental flaw in the current framework.

McMillan Recommendation 20: Penalties for Non-Compliance

McMillan recommended that the Act include penalties for reporting entities that:

  • Fail, without reasonable excuse, to submit a modern slavery statement within their reporting period.

  • Submit a modern slavery statement with knowingly false information.

  • Fail to comply with Ministerial requests to take remedial action.

  • Fail to implement a due diligence system as required under section 25.

Government Response: The Government has agreed to this recommendation in principle, with consultations to follow. This delay in implementing penalties undermines the Act’s ability to drive accountability.

McMillan Recommendation 27: High-Risk Declarations

The review suggested empowering the Minister or Anti-Slavery Commissioner to:

  • Issue written declarations identifying high-risk regions, industries, products, suppliers, or supply chains.

  • Outline how reporting entities must address such declarations in their modern slavery statements.

Government Response: The Government agreed to this recommendation in principle and will consult on the model. We view this as a positive step, as it has the potential to streamline efforts, save resources, and enhance the collective capacity to combat modern slavery.

McMillan Recommendation 4: Lowering the Revenue Threshold

The review recommended reducing the reporting threshold so that entities with annual consolidated revenue of at least $50 million (down from $100 million) are required to report under the Act.

Government Response: The Government has chosen not to lower the threshold. We note that smaller entities are already indirectly impacted as larger entities require transparency from their suppliers under the Act.

What We Need: Action, Not More Delays

After waiting 557 days for the Government’s response to the McMillan Review, we had hoped for decisive action and leadership. While there are recommendations may warrant further well defined consultation, civil society, businesses, and other stakeholders have already provided extensive feedback, and there is a wealth of experience to draw from in the UK, US, and Europe. The Government had a clear opportunity to accept McMillan’s recommendations and move swiftly to implement them. Instead, we are left with further delays and missed opportunities to protect those most at risk.

For the 22 more people who fall into slavery each day in Australia, this lack of urgency is unacceptable.

What can you do?

  1. Donate to Be Slavery Free, and help us to keep pushing for reform and action.

  2. Write to your local Member of Parliament or Senator. Let them know that the lack of urgency for millions of people trapped in conditions of slavery, and that each day of delay in enacting means that 22 more people are being trapped into slavery in Australia.

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What does the EU Corporate Sustainability Due Diligence Directive (CSDDD, CS3D) mean for Australian Businesses?