Cultural change will be just as important as measurable targets when it comes to improving workplace gender equality, a parliamentary committee has been told.
Proposed law reforms would introduce a new requirement for businesses with 500 or more employees to commit to achieve, or make progress on, their measurable gender equality targets.
Employers would be required to pick three targets which could include gender composition of the workforce, equal remuneration between women and men, and consultation with employees on issues concerning gender equality in the workplace.
Employers would then have three years to achieve or improve on those targets.
The failure to either set a target or make progress towards it could result in an employer being publicly named, and impact their eligibility for government procurement and ability to be considered for funding and grants.
Cultural change would also be required to see long-term and widespread improvements in gender equality.
"It's about cultural change across the board and breaking down affiliations we have about 'women's work' and 'men's work'," University of Canberra Associate Professor in Economics Leonora Risse told a parliamentary committee examining the reforms.
"We've done a lot of work to ensure women are included in the workforce but we haven't done enough to promote men's roles outside of work, in care, in the community.
"Articulating that when men step into care-giving or spend more time in community work … it's still an achievement - it fits into masculinised ideals of achievement and it's not falling short of what it is to be a man."
While the reforms are being welcomed by unions, equality advocates and diversity commissions, employer representatives have argued changes to penalise businesses by not allowing them to be eligible for government contracts would create an unfair playing ground.
The Australian Industry Group said only Australian businesses would require a compliance certificate on gender targets from the Workplace Gender Equality Agency, giving foreign businesses an advantage in government procurement.
The Australian Human Rights Commission recommended the requirements be extended to businesses with 100 or more employees, rather than the proposed 500.
In its submission, the commission said extending the target-setting requirement to more businesses would create a significant impact and achieve greater cultural change.
The Australian Industry Group said extending the requirements to smaller employers would put more strain on small businesses.
"The cost of complying would be beyond the capacity of some small businesses," head of industry development and policy Louise McGrath said.