At a time where there appears to be an ongoing review of diversity, equity and inclusion initiatives in other jurisdictions, Australia is establishing a gender equality targets scheme – the first of its kind globally – with the Federal Government introducing the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Act 2024.

The changes adopt a recommendation from a review of the Workplace Gender Equality Act 2012 (WGEA Act) released in 2022, which found progress on gender equality in Australia was slow. The changes follow the implementation of other key recommendations of that Review, which were implemented in late 2023 – see our earlier update. These latest changes are intended to accelerate gender equality by motivating action and embedding systemic cultural change in large workplaces.

What do you need to know?

Key changes in the Setting Gender Equality Targets Act include:

• Accelerating action on gender equality – The Act introduces new requirements for employers with 500 or more employees to select, meet or improve against, and report to the Workplace Gender Equality Agency (WGEA) on, measurable targets to progress gender equality in their workplace across the six Gender Equality Indicators (GEIs).
• Three year cycle – Designated relevant employers (DREs) will have a three-year period to achieve, or improve on, the selected targets, after which they will be required to select new targets for the next three-year period, and every three-year cycle after that. Progress towards selected targets will be published on WGEA's website. Private sector employers will select their first targets for reporting in the period commencing 1 April 2026, and Commonwealth public sector employers will do so from 1 September 2026.
• Gender equality targets in practice – The responsible Minister for Women has a new power to set a 'menu' of targets for DREs, and associated rules for selection of targets. An initial proposed menu of targets includes numeric targets and action items relating to improving the gender composition of Boards and broader workforces, reducing gender pay gap, flexible working arrangements and support for parents and carers, workplace consultation on gender equality, and efforts to prevent and address sexual harassment. Employers are required to choose three targets for the first three-year cycle. Once targets have been set, DREs are required to report to the WGEA on progress as part of their normal reporting submission.
• Compliance and regulatory burden – At the end of the three-year cycle, a DRE must have met or demonstrated improvement against the selected target, unless they have a reasonable excuse for not doing so. If found non-compliant, DREs may be publicly named by WGEA as non-compliant. Non-compliance will also render an employer ineligible to tender for Australian Government contracts. Consistent with existing provisions in the WGEA Act, employers will have an opportunity to make submissions to WGEA before being declared non-compliant. The Australian Industry Group has sought more detail around what constitutes a 'reasonable excuse'. We will need to wait and see.
• Improving the clarity of the Act – The Act amends the definition of 'relevant employer' to explicitly include subsidiaries (with 100 or more employees) as relevant employers. The Bill also inserts references to 'accountable authority' in the alternative to 'CEO'.

What can employers do?

Large employers captured by this scheme, if not already, will need to start considering what targets will be suitable for their organisations. This is particularly important for organisations that contract with the Australian Government, and any employer seeking recognition by WGEA as an Employer of Choice. The gender equality target regime is also a measure employers can take to support their positive duty to eliminate sexual harassment and related unlawful behaviours under anti-discrimination legislation, and their related work health and safety obligations to create a safe working environment.

The Government has indicated that "the number and nature of targets may require updating in light of employer experience and to reflect evolving leading practices in workplace gender equality over time". As this is a world first scheme, the Government has recognised that the scheme will need to be appropriately flexible to respond to the needs of organisations, without undue regulatory and administrative burden. We will be monitoring any related developments closely.

Other developments

Queensland

While the Federal Government has enacted these reforms to bolster gender equality initiatives, the Queensland Crisafulli Government has recently paused changes to Queensland's Anti-Discrimination Act 1991 to allow for further consultation. These changes had been due to start on 1 July 2025 and included new grounds of discrimination (eg irrelevant criminal record) and, significantly, a positive duty across all protected attributes (sex, age, impairment etc) – see more in our update last year.

This Queensland Government decision does not impact work health and safety regulation changes it already passed requiring organisations to prepare a written Sexual Harassment Prevention and Response Plan from 1 March 2025 – also discussed in our earlier update.

Other Federal changes

With an election just announced for 3 May 2025, we will be watching related developments closely including the progress of the Greens' Fair Work Amendment (Paid Reproductive Health Leave and Flexible Work Arrangements) Bill 2025. This Reproductive Leave Bill, introduced by the Greens into the Senate on 26 March 2025, seeks to, among other things, add 12 days of paid reproductive health leave to Australia's National Employment Standards, along with related reporting obligations.

Our workplace team can discuss ways to develop gender equality targets and implement broader strategies and programs to help ensure progress towards those targets over the next three years and beyond.

They can also provide briefings on these changes and the Respect@Work reforms generally, to help support your organisation, your Board and senior leaders meet their duties under discrimination and work health and safety laws to eliminate, so far as is reasonably practicable, sexual harassment and related unlawful behaviours.

For further insights on creating safe, inclusive and respectful workplaces, see our Respectful workplace cultures page.