A review into Australia's sanctions recommended the federal government include detailed reasoning when listing sanctions, the foreign affairs minister deliver an annual report to parliament and exemptions for legitimate humanitarian assistance in line with a UN Security Council resolution.
Laws should be expanded to include "threats to international peace and security" and "serious violations of international humanitarian law" as criteria, it recommended.
The autonomous sanctions regime allows the federal government to impose economic restrictions and travel bans on people and countries that exhibit egregious behaviour of international concern, including human rights abuses.
Contravening sanctions carries up to ten years in prison and substantial fines.
The Red Cross argued sanctions could have unintended consequences for delivering aid to areas where they were in place and could negatively impact civilians and humanitarian workers.
A sanctions permit can be granted by the minister to undertake an activity that would otherwise be banned but a standing exemption was preferred to improve efficiency and safeguard humanitarian action and donors.
Australia should focus on putting more sanctions and travel bans on human rights abusers within the Asia-Pacific region due to abusers likely having strong ties and networks within Australia, the inquiry was told.
The Department of Foreign Affairs flagged "broad support" for a more streamlined legal framework, improved exemption processes, and the introduction of civil and administrative penalties for breaching sanctions, the inquiry's report noted.
Sanctions played a vital role in addressing human rights abuses and curbing corruption, human rights committee chair Maria Vamvakinou said.
"Recent legislative developments have strengthened Australia's sanctions framework," she said.
"But as this review makes clear, there are opportunities for us to have an even greater global impact through our use of autonomous sanctions."
