Background
The Workplace Gender Equality Act 2012 (Cth) (the Act) aims to promote gender equality in employment by removing barriers to women's full participation and eliminating gender-based discrimination in the workplace.
Prior to the recent amendment, the Act required relevant employers with 100 or more employees to submit annual reports to the Workplace Gender Equality Agency (the Agency), detailing information about gender equality indicators (GEIs).
Additionally, since 1 April 2023, employers with 500 or more employees, known as designated relevant employers (DREs), have been required to have policies or strategies in place to support the six GEIs outlined in the Act.
Recent changes
On Wednesday 26 March 2025, the Federal Parliament passed a bill for the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Act 2025 (Cth) (the Amendment).
This amends the Act by introducing a "world-first" targets scheme to accelerate action on gender equality by large Australian employers. This target scheme implements one of the ten recommendations from a review of the Act in 2021, which found progress on gender equality in Australia was "too slow".
The Amendment creates new obligations for DREs to commit to, achieve or at a minimum, make improvements on measurable targets aimed at advancing gender equality in the workplace, in addition to the existing requirements under the Act.
DREs have a range of targets to choose from as set by the responsible Minister for Women, which focus on several key areas, being:
- the gender composition of boards and the overall workforce
- the gender pay gap
- flexible working arrangements and support for parents and carers
- workplace consultation on gender equality
- initiatives to prevent and address sexual harassment.
The set targets are classified into two broader categories, being either "numeric" or "action" targets. A numeric target requires adjusting percentage points concerning either gender representation or remuneration gaps. An action target requires employers to implement or improve one or more policy or strategic objectives.
DREs must select three different targets for each period, one of which must be numeric. DREs are permitted to select more than one target from the same GEI. However, they are not permitted to select an action target that commits to implementing a measure already in place.
The full list of targets and rules for selection are outlined in the Workplace Gender Equality (Gender Equality Targets) Instrument 2025 (Cth).
Commencement
Private sector employers will select their first targets for reporting in the period from 1 April to 31 May 2026.
Commonwealth public sector employers will do the same later that year, with their submission period running from 1 September to 31 October 2026.
This gives all DREs a substantial window of opportunity to understand the new requirements and decide on their gender equality targets.
Reporting and compliance
Once targets are set, DREs must report their progress to the Agency as part of their normal reporting submission under the Act. DREs will then have a three-year timeframe to meet or improve upon the chosen targets.
Employers will be considered non-compliant if, by the end of the three-year cycle, they have not achieved their set targets or have not shown any improvement from the baseline for all their targets, unless they have a reasonable excuse. Guidance is yet to be released on what will constitute a "reasonable excuse".
Key takeaways
In preparing for the target scheme, DREs should:
- become familiar with the new targets scheme and be ready to select targets from 1 April 2026 for private sector employers and 1 September 2026 for Commonwealth public sector employers
- ensure policies or strategies are in place to support the six GEIs by implementing new initiatives or improving existing ones
- be prepared to report progress on the selected targets to the Agency as part of the normal reporting submissions under the Act
- be aware that non-compliance with the amended Act can result in being publicly named by the Agency and losing eligibility for a certificate of compliance (which is important for securing government contracts).
For more information on how the Amendment may impact your organisation, please contact our experienced Workplace Relations & Safety team.
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