Employers will soon be asked to set, achieve gender equality targets under amended WGEA legislation
Employers with over 500 employees will soon be required to set and make progress on three gender equality targets under newly passed amendments to the Workplace Gender Equality Act (WGEA) 2012.
The amendments require employers in both the private and public sectors to set three gender equality targets, with a three-year timeframe to achieve or make progress on them. Among the priority areas that employers can choose are:
Gender pay gap
Workforce and board composition
Support for carers and parents
Consultation
Prevention of sexual harassment
"By introducing a target-setting requirement, Australia is ensuring large employers are publicly accountable to take action and make demonstrable progress towards gender equality," said Mary Wooldridge, chief executive officer of the Workplace Gender Equality Agency, in a statement.
The mandate will apply to nearly 2,000 employers and will benefit 3.9 million employees. According to WGEA, 56% of employers covered by these reforms are already setting gender equality targets, including about one-third that have already set three or more targets.
Private sector employers may select their targets for the 2025-26 Gender Equality Reporting between April 1 and May 31, 2026. For Commonwealth public sector employers, their submission period will begin in September.
Employers who fail to select or make progress on their targets may not be able to tender for certain Commonwealth contracts. If they don't have a reasonable excuse, they can be publicly named.
WGEA will publish each employer's selected targets, with the outcomes to be published at the end of the period.
Target setting was a recommendation under the 2021 review of the Workplace Gender Equality Act 2012.
Wooldridge said it aims to speed up employer actions to ensure gender equality in the workplace amid a "large group of employers" who are not making progress on it.
"Employers indicate that even when they are aware they have a significant gender pay gap, many haven’t taken action to reduce it," the WGEA CEO said.
"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."
The agency said it will work with employers for the next 12 months to help them prepare, including providing them details on the menu of targets, as well as direct advice on what to choose and then achieve their goals.
