Attorney-General Michelle Rowland announced the nation's modern slavery laws will be strengthened in a bid to tackle the illegal practice.
Under the government's changes, companies with an annual revenue of more than $100 million would be subject to a new criminal offence in addition to a new civil penalty that will be added to the existing Modern Slavery Act.
Companies will have a defence available if they can prove they took reasonable steps to prevent modern slavery, in a move to give them some protection.
The size of the fine will be determined following consultation, but is expected to be proportionate to the worth of the companies captured under the framework.
An estimated 50 million people across the world are enslaved, according to the Global Slavery Index.
This includes people trapped in human trafficking and forced labour.
Ms Rowland said the government will work closely with stakeholders on the proposed legal changes, while supporting Australian businesses.
"Australians rightly expect that the products they buy are not made on the back of modern slavery, which is why the Albanese government is delivering a legislative framework with teeth," she said.
"The proposed changes will introduce greater accountability, levelling the playing field for the majority of Australian businesses already doing the right thing."
It comes after the Trump administration proposed a 12.5 per cent tariff on Australian exports to the US, as part of new levies on 60 countries the White House claims have inadequate anti-slavery laws.
The higher US tariffs are expected to come into force this month when the current baseline 10 per cent levy imposed on Australia expires.
The nation's anti-slavery commissioner has previously accused the US of weaponising human rights issues for its own purposes, while acknowledging Australia needed to do more to prevent forced labour in supply chains.
8°C