New bill wants big businesses to set, meet gender equality targets

The Australian government is proposing new legislation that will mandate organisations to set and meet gender equality targets.

The proposed legislation, titled Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill 2024, was introduced by Labour MP Kate Thwaites.

"It will require big companies, those with 500 employees or more, to set and meet gender equality targets," Thwaites said on a Facebook post.

"These targets will be around things like the gender composition of their board and their workforce, their flexible working policies, the things that we know make a difference to women in the workplace."

Employers who are found non-compliant may not receive a certificate of compliance, which is required to be eligible for securing contracts with the government.

According to Thwaites, the introduction of the requirement will accelerate Australia's progress in gender equality in workplaces.

"Our government understands that improving gender equality in our workplaces is good for Australian women, it's good for Australian families, and it's good for our economy and business productivity," she said.

A 'damaging' proposal

But the proposal was met with strong opposition from the national employer association Ai Group, who warned that gender equality prerequisites will be "onerous and inconsistent."

"Proposed legislation introducing gender equality targets that many businesses must meet to be eligible to secure government contracts is damaging to effective government procurement practices in Australia," said Innes Willox, chief executive of the Ai Group, in a statement.

Willox said many employers already need to show that they are compliant with their obligations under the Workplace Gender Equality Act to be considered for contracts above the relevant procurement value.

"The proposal to now add onerous gender equality targets to win work undermines the reasonable balance that has already been struck in the existing principles," Willox said.

"It is of particular concern that these requirements may be implemented in an inconsistent and uneven way between businesses. This weakens principles of competition and a level playing field central to procurement practices."