New federal laws mandate gender equality targets for employers with 500+ employees
On 26 March 2025, the federal Parliament passed the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill 2025 (Cth) (Bill). The Bill will amend the Workplace Gender Equality Act 2012 (Cth), with the amendments commencing on the earlier of three months after the Bill receives Royal Assent or a day fixed by proclamation.
The Bill is a significant legislative step aimed at accelerating gender equality in Australian workplaces. Building on the 2023 reforms that mandated the publication of employer gender pay gaps, the Bill introduces a targets scheme which will require large employers to commit to measurable gender equality targets. The federal government says its initiative is designed to foster accountability, transparency, and cultural change within organisations.
The new laws will require ‘large employers’ (defined as organisations with 500 or more employees) to select and work towards achieving or improving upon at least three targets from a defined list, to be provided in a separate legislative instrument.
The targets will be aligned with the Workplace Gender Equality Agency (WGEA) gender equality indicators, which include the gender composition of boards and the workforce, the gender pay gap, flexible working arrangements, support for parents and carers, workplace consultation on gender equality, and efforts to prevent and address sexual harassment. Large employers are already required to have policies or strategies addressing each of the gender equality indicators.
Employers failing to meet the requirements without reasonable excuse will face being ‘named and shamed’; the WGEA may name the employer as having failed to comply with the WGEA Act and set out details of the non‑compliance. The WGEA names non-compliant employers on its website. Further, large employers will be required to comply with the targets scheme to obtain a certificate of compliance from WGEA. The certificate is a condition of an employer's eligibility to contract with the Australian government.
Employers will have three years to make progress towards or achieve their selected targets, which the government says will provide them with the flexibility to address priority areas within their workplaces. The targets include both numeric goals, such as reducing the gender pay gap and improving gender composition in specific roles, and action-based targets, such as implementing paid parental leave programs or enhancing flexible work offerings. These targets will be based on the data employers already report to WGEA.
The Bill also builds on previous amendments to the WGEA Act, including the 2023 changes that required the publication of gender pay gaps for private sector employers with 100 or more employees. The federal government says its inclusion of a gender equality targets scheme supports its 2022 election commitment to close the gender pay gap and promote gender equality in workplaces. The government aims to drive changes that benefit both employees and employers, leading to improved staff retention, productivity, safety, and reputation.
The new laws provide for employers to be recognised for their efforts to make progress towards their targets, even if they do not fully achieve them within the three-year period. This approach is intended to encourage employers to take active steps to improve gender equality without the fear of being penalised for setting ambitious goals.
The Bill represents a landmark effort to advance gender equality in Australian workplaces. By mandating measurable targets and providing support for employers, the Bill aims to create lasting cultural change and position Australia as a global leader in gender equality.
Action items for employers
Large employers (or those who anticipate becoming large employers) should:
- Conduct a thorough gender pay analysis to identify existing gaps and areas for improvement.
- Select at least three gender equality targets from the list when it is released and develop a comprehensive action plan to achieve the targets.
- Implement policies and strategies that support flexible working arrangements and parental leave programs.
- Engage in regular workplace consultations on gender equality to ensure ongoing progress and accountability.
- Monitor and report progress towards the selected targets.
- Continue to meet and report on gender equality indicators, including the gender composition of boards and the workforce, gender pay gap, flexible working arrangements, support for parents and carers, workplace consultation on gender equality, and efforts to prevent and address sexual harassment.
Please contact Joel from our Workplace law team for assistance with the above or any other Workplace law issues.
This publication constitutes a summary of the information of the subject matter covered. This information is not intended to be nor should it be relied upon as legal or any other type of professional advice. For further information in relation to this subject matter please contact the author.
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