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AAP
AAP
Maeve Bannister

Major employers urged to hit gender equality targets

The gender pay gap and workforce composition are among the equality issues new laws aim to improve. (Bianca De Marchi/AAP PHOTOS)

Employers will soon have to commit to achieve or make progress on gender equality targets in their workplaces after federal parliament passed law changes.

The changes apply to employers with more than 500 workers, meaning nearly 2000 workplaces will need to meet the new standards, with 3.9 million employees set to benefit.

Employers will be required to choose three gender equality targets such as intentional action to cover the gender pay gap, workforce and board composition, support for carers and parents, consultation and sexual harassment prevention.

They will then have three years to achieve or make progress on their selected targets.

Workplace Gender Equality Agency CEO Mary Wooldridge (file image)
Mary Wooldridge says some employers are not making much progress on gender equality. (Mick Tsikas/AAP PHOTOS)

The Workplace Gender Equality Agency will publish each employer's selected targets on its website, as well as their outcomes.

The purpose of requiring employers to set and achieve targets was to ensure all employees were equally valued, rewarded and safe at work, agency chief executive Mary Wooldridge said.

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

"Targets are specific, time-bound and measurable objectives that set a benchmark for employers to work towards (and) 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 will fail to comply with the new laws and may not be eligible to tender for certain Commonwealth contracts.

If they do not have a reasonable excuse they could also be publicly named.

Private sector employers will select their targets between April 1 and May 31, 2026, while Commonwealth public sector employers will follow in September.

This will give employers 12 months to understand the changes and choose their targets.

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