Large employers will soon be required to select and make progress on gender equality targets after the federal parliament passed new changes.
Under the legislation, passed through federal parliament on Wednesday night, employers with 500 or more employees must select three gender equality targets that they will then have three years to achieve or make progress on.
The targets include measures like addressing the gender pay gap, getting more women on boards, sexual harassment prevention, flexible work arrangements and better support for carers and parents.
The targets will be administered by the Workplace Gender Equality Agency (WGEA). WGEA CEO Mary Wooldridge says the targets are designed to ensure employers are publicly accountable to take action on gender equality.
“While many employers are making great progress on gender equality, there is also a large group of employers who are not,” Wooldridge said on Thursday.
“Employers indicate that even when they are aware they have a significant gender pay gap, many haven’t taken action to reduce it.
“Targets are specific, time-bound and measurable objectives that set a benchmark for employers to work towards. The evidence available shows they are effective in driving real change.
“By introducing a target setting requirement, Australia is ensuring large employers are publicly accountable to take action and make demonstrable progress towards gender equality.”
The targets will commence from next year. WGEA says it will work closely with employers over the next 12 months to help them prepare.
Under the changes, employers that do not select, make progress on, or achieve the targets may not be able to tender for Commonwealth contracts. They can also be publicly named if they do not have a reasonable excuse.
“These world-leading reforms will help drive gender equality in workplaces right around the country, as our Government works with employers to close the gender pay gap and ensure workplaces are fair, respectful, flexible and safe for all employees,” Assistant Minister for Women, Kate Thwaites said.
“We know there’s more work to do, and our Government is determined to keep up the momentum – even in the face of Peter Dutton and his Coalition yet again standing in the way of gender equality and voting against these reforms.”
Employers across the private sector will select their targets between 1 April and 31 May 2026. Commonwealth public sector employers will follow in September.