Gender equality targets and big business: world first proposal passed in Australia

The landmark Bill we discussed in March has now received Royal Assent as the Workplace Gender Equality Amendment (setting Gender Equality Targets) Act 2025.

This article sets out everything you need to know in order to comply with the new obligations, which came into effect on 4 April 2025.

New obligations

Employers with 500 or more employees are now required to:

1. Select three gender equality targets from the WGEA’s menu when submitting their 2026 gender equality report to WGEA and ensure at least one of these targets is numeric.
2. Include data regarding their progress towards achieving these targets in their 2027 and 2028 gender equality reports to WGEA.
3. Provide evidence of achieving targets or measurable improvement on targets in their 2029 gender equality reports to WGEA.
4. Select three new gender equality targets when submitting their 2029 gender equality report to WGEA and repeat this process for the following three-year cycle.

How to select targets

The WGEA recommends that you:

1. undertake a gender pay gap analysis to identify the underlying drivers of gender inequality in your workplace, and
2. select targets which address these drivers.

Employers can select from 9 numeric and 10 action targets on the WGEA’s menu.

Numeric targets require employers to nominate measurable improvements they will make. For example, ‘increase the uptake of primary parental leave by the underrepresented gender’ or ‘increase representation by pay quartile’.

Action targets require employers to commit to implementing or improving policies and procedures. For example, ‘improve flexible work offerings’ or ‘introduce employer-funded parental leave’.

Employers will not be able to select an action target if their prior WGEA reporting indicates this action has already occurred/already exists. Therefore, employers who have already implemented numerous measures to address gender equality may find there are limited action targets for them to select. These employers may need to focus on numeric targets, having already laid the groundwork to now achieve measurable improvements. Further, numeric targets can be reselected in future cycles. That is, even if an employer had achieved all 19 targets, it can re-set a numeric target with a goal to improve on its previous results.

Non-compliance

If an employer does not set, meet, or improve on their targets they are given an opportunity to provide a reasonable excuse for their failure.

If the WGEA does not accept this excuse, the employer will be found to be non-compliant. In practice, this means the employer will be:

1. publicly named as ‘non-compliant’, and
2. ineligible to tender for Commonwealth procurement above $80,000.

Impact on business

Employers with 500 or more employees already have annual reporting obligations to the WGEA.

The WGEA has indicated that:

• 50% of employers with 500 or more employees are already setting targets to achieve gender equality,
• employers will not be required to submit any additional information when setting their targets, and
• the WGEA can monitor progress on these targets using data employers are already required to report.

Therefore, employers can focus their efforts on implementing measures to address gender equality rather than on fulfilling onerous reporting and compliance requirements.

In addition, many of the WGEA targets may assist employers to fulfil their existing positive duty. For example, employers can set targets to ‘improve policies regarding preventing, reporting and responding to sexual harassment’ or implement ‘equal remuneration and gender pay equity policies’.

Our tips for success

1. Proactive planning: Start planning for your 2026 reporting early to meet the new requirements. Allocate resources and assign personnel to oversee gender equality initiatives.
2. Engage stakeholders: Involve employees at all levels in the planning and implementation process. Seek their input and address their concerns to build buy-in and support.
3. Highlight success stories: Share success stories from other organisations that have successfully implemented gender equality initiatives. This can help to illustrate the benefits and inspire confidence.
4. Provide incentives: Consider offering incentives for teams or departments that make significant progress towards gender equality targets. This can motivate employees to actively participate in the initiatives.
5. Address concerns openly: Be transparent about challenges and address any concerns or misconceptions openly. Provide a platform for employees to voice their opinions and ask questions.
6. Regular monitoring and reporting: Establish a robust system for monitoring progress and reporting on gender equality targets. Regularly review and adjust strategies as needed to stay on track.
7. Support and resources: Take advantage of the resources and support provided by the WGEA. Follow the guidelines and best practices to implement effective gender equality initiatives.

By taking these steps, employers can not only comply with the new legislation but also create a more inclusive and equitable workplace that benefits everyone.

Want to know more?

Please contact us for tailored advice on implementing our recommendations and complying with your legislative obligations.