Australia’s Modern Slavery Act Reforms (2026): What to Ask Your Bangladesh Apparel Supplier | Nak Fashion Group
Australia’s Modern Slavery Act Reforms: What to Ask Your Bangladesh Apparel Supplier
Australia is moving from a reporting law to one with real consequences. Here is what changed in 2026, who it affects, and how to show your Bangladesh supply chain is under control.
| QUICK ANSWER Australia’s Modern Slavery Act requires entities with annual revenue of AUD 100 million or more to publish yearly modern slavery statements. In July 2026 the government announced a new criminal offence for failing to prevent modern slavery in supply chains, with a defence for companies that took “reasonable steps”, plus civil penalties for reporting breaches. For fashion brands, that makes supplier evidence essential. |
What the law requires today
Since 2019, Australian entities with consolidated revenue of AUD 100 million or more have had to publish an annual modern slavery statement. It must describe the risks in their operations and supply chains, the actions taken to assess and address them, and how they measure whether those actions work. Until now there has been no penalty for a weak statement — the law required disclosure, not action.
What changed in July 2026
On 16 July 2026, the Australian Government announced reforms that change that:
- A new criminal offence for entities above the AUD 100 million threshold that fail to prevent modern slavery in their supply chains. Companies that can show they took “reasonable steps” will have a defence.
- Civil penalties for breaching existing reporting obligations.
- New regulator powers: information-gathering, enforceable undertakings, infringement notices and civil penalty orders.
Other measures are still under consideration, including mandatory due diligence, penalties for false statements, and powers to declare high-risk products or industries. No start date has been set; consultation comes first.
| WHY THIS MATTERS FOR APPAREL The “reasonable steps” defence turns your sourcing records into legal protection. Garments are widely treated as a high-risk sector for forced labour. If something goes wrong in your supply chain, what you can prove you did beforehand is what counts. |
Smaller brands are affected too
If your revenue is under AUD 100 million, the reporting duty doesn’t apply to you directly. But the department stores and retailers you sell to are covered, and they pass their requirements down to their suppliers. Expect more detailed supplier questionnaires from Australian retailers as the reforms progress.
8 questions to ask your Bangladesh supplier
1. Which factory makes my order? Get the name and address of each production site, and confirm there is no undisclosed subcontracting.
2. Which social audits does each factory hold — BSCI, SEDEX/SMETA, WRAP — and are they in date?
3. Do workers pay recruitment fees? Fees and debt are key forced-labour indicators.
4. Can workers raise concerns safely? Ask what grievance channel exists and how complaints are handled.
5. How are working hours and overtime tracked and capped?
6. Do you know where the fabric and yarn came from, beyond the sewing factory?
7. What happens if an audit finds a problem? Ask for the corrective-action process and timelines.
8. Will I receive audit reports and certificates with each shipment, so I have evidence for my statement and my reasonable-steps defence?
How a buying house helps
Monitoring factories from Australia is expensive for any single brand. A buying house does that work as part of the service. Nak Fashion Group works through 300+ partner factories holding BSCI, SEDEX, ISO 9001 and OEKO-TEX certifications. We track audit validity and renewals, and supply compliance documentation with every shipment. That gives you a documented record of the steps taken — the evidence the reformed Act will reward.
| Preparing for Australia’s reforms? We’ll show you exactly which compliance documents come with an order, and how our partner-factory audit tracking supports your modern slavery statement. Talk to our team → |
The bottom line
Australia is joining the EU and Germany in making supply-chain due diligence carry consequences. For fashion brands, the practical response is the same: know your factories, keep current audits on file, and choose a supplier who treats documentation as part of the product.
Frequently Asked Questions
Entities based or operating in Australia with annual consolidated revenue of AUD 100 million or more must publish an annual modern slavery statement.
A new criminal offence for failing to prevent modern slavery in supply chains, with a reasonable-steps defence, plus civil penalties for reporting breaches and new regulator powers. Implementation dates had not been set at the time of writing.
The detail is still to be defined, but it is expected to cover risk assessment, supplier due diligence, monitoring and remediation. Documented evidence — audits, supplier lists, corrective actions — is central to showing it.
Not directly. But retailers above the threshold are likely to require modern slavery information from all their suppliers, so smaller brands will be asked for the same evidence.
This article is general information for sourcing teams, not legal advice. The 2026 reforms were announced but not legislated at the time of writing, and details may change during consultation. Confirm your obligations with qualified Australian counsel.
