New Bill forces companies to set gender equality targets

Australia’s latest move to tackle gender inequality in the workplace is set to send ripples across nearly 2,000 employers with 500 or more employees. On March 26, Parliament passed amendments to the Workplace Gender Equality Act 2012 (the Act), requiring these employers to set gender equality targets and more importantly, make real progress on them.

The reforms, which will impact 3.9 million Australian workers, force employers to select three targets from a menu of both numeric and action-oriented goals. These targets will tackle some of the most pressing issues in gender equality, including the gender pay gap, workforce and board composition, support for carers and parents, consultation, and the prevention of sexual harassment. Companies will have three years to achieve – or at least make measurable progress on – these targets.

Mary Wooldridge, CEO of the Workplace Gender Equality Agency (WGEA), welcomed the passage of the Bill but made it clear that the new requirement aims to push employers beyond surface-level efforts. She acknowledged the leadership of Minister for Women, Senator Katy Gallagher, in delivering these vital reforms.

“While many employers are making great progress on gender equality, there is also a large group of employers who are not,” Wooldridge said.

The introduction of target setting follows a recommendation from the 2021 review of the Act, and studies have shown that this approach can be a powerful tool in driving actual progress.

According to WGEA’s own analysis, 56% of the employers impacted by these changes are already setting gender equality targets. Importantly, about one-third of them are already setting three or more targets – sufficient to meet the new requirements.

The WGEA will publicly publish each employer’s chosen targets, as well as outcomes, on their website’s Data Explorer. This means the transparency is real, and employers’ progress – or lack thereof – will be open for all to see.

Wooldridge raised a crucial point, saying “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 stakes are high. Employers who fail to select, make progress on, or achieve their targets could face consequences – especially when it comes to tendering for Commonwealth contracts. A failure to comply could lead to public naming if there is no reasonable excuse for non-compliance.

Private sector employers must set their targets by the 2025-26 Gender Equality Reporting period, which runs from April 1 to May 31, 2026. The Commonwealth public sector will follow shortly after, with submissions due between September 1 and October 31, 2026. This gives employers exactly 12 months to understand the changes and prepare to act.

WGEA is offering support to employers as they navigate these new requirements. They will provide resources, masterclasses, and direct advice to help employers effectively choose and achieve their gender equality targets.

The question remains: will these large employers truly seize the opportunity to make gender equality a priority, or will this simply become another box to tick?

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