The Australian Government has announced plans to significantly strengthen the country's Modern Slavery Act, signalling a major shift from voluntary reporting towards greater corporate accountability for managing modern slavery risks in global supply chains.
According to reporting by Rob Harris in The Age (17 July 2026), companies with annual consolidated revenue exceeding $100 million could face criminal prosecution if they fail to take reasonable steps to prevent modern slavery within their operations and supply chains. The proposed reforms would also introduce civil penalties for businesses that fail to comply with existing reporting obligations, addressing long-standing criticism that Australia's current framework lacks meaningful enforcement.
The proposed offence would include a defence for businesses able to demonstrate they have undertaken appropriate due diligence to identify, assess and mitigate the risks of forced labour, debt bondage and other forms of exploitation. The reforms follow recommendations from the independent review of Australia's Modern Slavery Act, which concluded that the existing legislation had not driven sufficient change since its introduction in 2018.
The proposed changes also reflect increasing international scrutiny of supply chain transparency. Recent estimates from supply chain intelligence firm Fair Supply suggest that more than one in five goods imported into Australia originate from supply chains where forced labour risks are known to exist, highlighting the importance of robust supplier due diligence across many sectors.
What this means for the PVC industry
For many organisations operating in Australia's PVC value chain, responsible sourcing is already an established business practice. Nevertheless, the proposed reforms reinforce the need for companies to understand their supply chains, engage with suppliers, and maintain evidence that appropriate risk management processes are in place.
The Vinyl Council of Australia's PVC Stewardship Program (PSP) has long recognised responsible sourcing as a fundamental element of sustainable product stewardship. PSP Signatories commit to demonstrate a commitment to preventing modern slavery and other unethical labour practices within their supply chains through appropriate procurement policies, supplier engagement and governance processes.
The Mondern Slavery commitment reflects the Program's broader objective of promoting environmental, social and governance (ESG) best practice across the Australian PVC industry. While the proposed legislative changes may increase regulatory expectations for many businesses, PSP Signatories are already participating in a framework that encourages continual improvement and responsible supply chain management.
As consultation on the reforms progresses, VCA will continue to monitor developments and keep members informed of any changes that may affect compliance obligations. In the meantime, the proposed legislation serves as a timely reminder that effective supply chain due diligence is increasingly becoming a core component of good corporate governance and responsible business practice.