Australian employers with 500 or more employees will need to select, and achieve or make progress on, gender equality targets after amendments[1] to the Workplace Gender Equality Act 2012 (the Act) passed Parliament last night.
The changes apply to nearly 2,000 employers and will benefit 3.9 million Australian employees. These employers are required to choose 3 gender equality targets from a menu of numeric and action-orientated targets.
Priority areas for intentional action cover the gender pay gap, workforce and board composition, support for carers and parents, consultation, and prevention of sexual harassment. The employers will have 3 years to achieve, or make progress on, each of their selected targets.
Target setting was a recommendation of the 2021 review of the Act and has been shown to be an effective lever to improve workplace gender equality.
Change is driven by both the analysis and engagement in the process to set targets, as well as the enhanced transparency and visibility through the articulation and measurement of progress.
Analysis of employer reports to the Workplace Gender Equality Agency (WGEA) show that 56% of the employers covered by these reforms are already setting gender equality targets. Approximately one-third are already setting 3 or more targets, which would meet the new requirement to select targets.
WGEA will publish each employer's selected targets on the Data Explorer on the WGEA website. Outcomes on the selected targets will also be published at the end of the period.
WGEA will work closely with employers over the next 12 months to help them prepare. The Agency will offer support to employers to implement the new requirements, including providing details on the menu of targets that can be selected and resources, masterclasses and direct advice on how they can effectively choose, and then achieve, the targets they set.
WGEA CEO Mary Wooldridge welcomed the passage of the Bill and acknowledged the leadership and significant work of Minister for Women Senator The Hon. Katy Gallagher to deliver these crucial reforms.
Ms Wooldridge said the purpose of the requirement to set and achieve targets is to accelerate employer actions to ensure all employees are equally valued, rewarded and safe at work.
"While many employers are making great progress on gender equality, there is also a large group of employers who are not," Ms Wooldridge said.
"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."
Employers that do not select, make progress on or achieve the targets fail to comply with the Act and may not be able to tender for certain Commonwealth contracts. If they do not have a reasonable excuse, they can be publicly named.
Private sector employers will select their targets in 2025-26 Gender Equality Reporting to WGEA between 1 April and 31 May 2026. Commonwealth public sector employers will follow in September (submission period from 1 September-31 October 2026).
This means employers have 12 months to understand the changes and choose their gender equality targets.
Dr Leonora Risse's research paper, commissioned by WGEA, outlines the evidence relating to the most effective use of targets including setting targets and the best processes for embedding, reporting and monitoring.
[1] Workplace Gender Equality Amendment (Setting Gender Equality Targets) Act 2024 amends the Workplace Gender Equality Act 2012.
