The government has announced the introduction of mandatory Gender Equality Targets for employers of 500 people or more. CIE Legal is helping clients prepare for this significant change, which will take effect in around 12 months’ time. Here’s what you need to know and how you can contact us.
Snapshot of changes
Employers with 500 or more employees are now required to select and achieve (or at a minimum, show progress) towards three ‘Gender Equality Targets’ over the following three years, in an effort to improve gender equality in workplaces nation-wide.
This cycle of achieving (or at minimum, progressing towards) three targets will continue every three years (“a target cycle”).
Employers with less than 500 employees are encouraged, but not required, to work towards gender equality targets. An employer whose employee count was 500 or more, and it falls below 400 for a period of 6 continuous months, is no longer required to comply with these obligations.
Australia is said to be the first country in the world to require employers to choose targets and work towards improving gender equality in the workplace in this way.
Background
In 2021, a review of the Workplace Gender Equality Act 2012 (the Act) found that gender inequality persisted in the workplace. To “accelerate progress” of gender equality, the review made recommendations which included setting targets for employers to work towards and increasing the transparency of gender pay gaps by publishing organisations’ data.
On 27 March 2025 the Government passed the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Act 2025, amending the Act to include gender equality targets.
The Workplace Gender Equality Agency (WGEA) oversees compliance with the Workplace Gender Equality legislation. Employers already have reporting obligations to WGEA regarding their gender pay gap and related data.
What are the Gender Equality targets?
The targets are divided into six ‘Gender Equality Indicators’, focusing on topics such as equalising the gender composition of the workforce and governing bodies, equal remuneration, flexible working arrangements, consultation on gender equality issues in the workplace and sexual harassment.
Of the three targets to be chosen, at least one must be a ‘numerical’ target, and the other targets can be ‘action-orientated’ targets (or a mixture of both). Relevant private sector employers must choose their three targets by April/May 2026, in the next reporting cycle to WGEA.
The 19 targets are as follows, each with their own criteria and specifications:
- increased representation (non managers);
- increased representation (managers);
- increased representation (promotions to manager);
- increased representation (pay quartile);
- composition of governing body;
- reducing the gender pay gap;
- reducing the gender pay gap for managers or non managers;
- undertake gender pay gap analysis;
- equal remuneration and gender pay equity policies;
- introduce employer funded parental leave;
- increase the uptake of primary parental leave by the under represented gender;
- improve employer funded parental leave;
- improve facilities or support for employees with carer responsibilities;
- improve flexible work offerings for employers;
- proportion of managers who are part time;
- improve supports for employees experiencing family and domestic violence;
- employee consultation on gender equality issues;
- improve policies regarding preventing, reporting and responding to sexual harassment; and
- mechanisms for reporting to employer’s CEO, key management personnel and governing body on sexual harassment.
Consequences of non-compliance
If an employer fails to comply with these obligations without reasonable excuse (or they provide false or misleading information), they will be deemed to be non-compliant with the Act.
Employers risk being “named and shamed” by WGEA, who has the extraordinary power to publish the names of non-compliant employers (subject to an employer’s written representations as to why they are non-compliant and should not be named).
WGEA is also responsible for issuing compliant employers with a ‘Certificate of Compliance’. Under the Workplace Gender Equality Procurement Principles, employers without this certificate may be unable seek to supply goods or services to the Government over a certain amount.
How can you prepare?
Preparation is key
Employers are encouraged to conduct a Gender Pay Gap Analysis of their employees, which works out the gender pay gap calculated using the average or median remuneration of male and female employees in the workplace and compare that calculation to indicia that may provide an insight into their data.
We recommend employers create a long-term plan for how to address any gender imbalances in their specific workplace, beyond the initial target cycle. Cultural changes to the workplace take time, and it is important to keep in mind that employers:
- who have already taken steps to address gender pay gaps in their workplace are at somewhat of a disadvantage where there is already less of an imbalance to address. These employers will need to be strategic when choosing targets to ensure achievement (or demonstratable progress) is possible.
- should account for employee movement and role variation (including any potential restructures) when creating their long-term plan.
Get in touch
We are helping clients prepare for this significant change now.
If you’d like to get on the front foot, please contact our HR Law team. We would love to help.
