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Following the release of its gender pay gap data last month, WGEA has now welcomed new amendments to the Workplace Gender Equality Act 2012, which passed Parliament last week.
Under new amendments to the Workplace Gender Equality Act 2012 (the act), Australian employers with more than 500 employees will now be required to select gender equality targets and achieve and make progress on them.
The changes, which were passed in Parliament on the evening of 26 March, apply to nearly 2,000 employers and will benefit 3.9 million Australian employees. Employers must choose three gender equality targets from a list of numeric and action-orientated targets, with key priority areas including the gender pay gap, workforce and board composition, support for carers and parents, consultation, and prevention of sexual harassment.
Employers will have three years to achieve, or make progress on, each of their selected targets.
Gender pay gap target setting was a recommendation of the 2021 review of the act and has been shown to be an effective measure to improve workplace gender equality.
Employers that do not select, make progress on or achieve the targets may be unable to tender for certain Commonwealth contracts. Moreover, if they do not have a reasonable excuse, they can be publicly named.
This comes after Workplace Gender Equality Agency (WGEA) data last month revealed the gender pay gaps of the country’s biggest law firms – with just under half of the 62 major law firms with comparable data to the previous reporting year having a worse gender pay gap, as reported by Lawyers Weekly.
Following this, a report found that women in Australian workplaces don’t believe that the government’s gender pay gap laws are working and, despite the data for some firms being skewed by the exclusion of equity partners from the gender pay gap data, firms with high GPGs were shown to have fewer women in top jobs. In addition to the WGEA gender pay gap data, half of law firms were found to pay their lowest earners less than many other industries.
Analysis of employer reports to the WGEA shows that 56 per cent of the employers covered by the new Workplace Gender Equality Act reforms are already setting gender equality targets, with around one-third already meeting the requirements.
Each employer’s selected targets will be published in the Data Explorer section of the WGEA website, with outcomes on the selected targets to also be published at the end of the period.
WGEA CEO Mary Wooldridge welcomed the passage of the bill and 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. Employers indicate that even when they are aware they have a significant gender pay gap, many haven’t taken action to reduce it,” she said.
“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.”
Private sector employers will select their targets in 2025–26 Gender Equality Reporting to WGEA between 1 April and 31 May 2026, and Commonwealth public sector employers will follow in September that year.
Employers now have 12 months to understand the changes and choose their gender equality targets.
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Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
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Lauren Croft
