The Bill introduces five key schedules to operationalise Australia's obligations under the 1948 Genocide Convention and the Rome Statute. Schedule 1 strengthens defence trade controls by prohibiting the export of military goods or services where there is a risk of use in serious international law violations. Crucially, it stipulates that "the Crown may be prosecuted for an offence under the Act," ensuring government officials cannot claim immunity for violating these provisions [Explanatory Memo page 10].
Schedule 2 mandates that the Future Fund, registered charities, and superannuation entities divest from assets linked to genocide risk or illegal settlement activity. This is intended to ensure that "Australia will not profit from human suffering" [Explanatory Memo page 5]. Schedule 3 establishes a Genocide Reporting Requirement, modeled on the Modern Slavery Act 2018, requiring large entities (revenue >$100m) and the Commonwealth to publish annual "genocide statements" regarding their value chains. It also creates an independent Anti-Genocide Commissioner to oversee compliance and raise awareness.
Schedule 5 prohibits the importation of goods and services originating from illegal settlements in occupied territories, as defined by international bodies like the ICJ. From the explanatory memo:
The purpose of Schedule 5 is to align Australia’s international trading policy with international human rights law and enforce existing international law decisions and obligations at a national level.The Bill aims to move Australia from a reactive sanctions-based approach to a proactive, legally mandated framework for atrocity prevention.
The primary argument for this Bill is the moral and legal necessity of upholding the 1948 Genocide Convention. Australia has a "positive obligation" to prevent genocide, which arises the moment the state learns of a serious risk [Explanatory Memo page 2]. By codifying these obligations into domestic law, the Bill ensures that Australia’s actions—particularly in trade and investment—are consistent with its stated values and international commitments [Judgment].
Furthermore, the Bill promotes transparency and democratic accountability. The establishment of a Genocide Reporting Requirement and an independent Anti-Genocide Commissioner empowers the public and investors to ensure their money is not being used to fund atrocities. As noted in the memo, "inaction also seriously diminishes public trust and confidence in these institutions" [Explanatory Memo page 5]. By removing Crown immunity, the Bill also reinforces the principle that no one, including the government, is above the law when it comes to the most serious international crimes[1] [Judgment].
This aligns with the principle of sovereign accountability under international law.
Critics may argue that the Bill imposes an excessive regulatory burden on Australian businesses and financial institutions. The requirement for entities with over $100 million in revenue to conduct exhaustive due diligence on global value chains mirrors the complexities of the Modern Slavery Act, which has already faced criticism for being a "tick-box" exercise that produces significant paperwork without necessarily changing outcomes on the ground [Judgment].
There is also a concern regarding the potential politicisation of "occupied territories" and "genocide risk." While the Bill references international bodies, the power of the Minister and the Commissioner to make declarations could be used to target specific nations for diplomatic reasons, potentially harming Australia's trade relationships and economic interests [Judgment]. Additionally, mandating divestment for superannuation funds may conflict with the fiduciary duty of trustees to maximise returns for members, potentially infringing on the property rights and financial autonomy of individual Australians who rely on these funds for retirement [Judgment].
2026-09-15
Senate
Before Senate
POCOCK, Sen David; FARUQI, Sen Mehreen; PAYMAN, Sen Fatima; THORPE, Sen Lidia
Unspecified
National Security, Discrimination / Human Rights, Trade Policy