The federal parliament has passed new laws requiring employers with 500 or more employees to choose and work towards three gender equality targets. These targets must include at least one numeric goal. Employers will have three years to make progress on these targets.
This landmark change makes Australia the first country globally to mandate gender equality targets for businesses. The new law aims to drive tangible progress in closing gender pay gaps and ensuring equitable workplace experiences.
What employers need to know:
- Who is affected?
This legislation applies to employers with 500 or more employees. Smaller employers (less than 500 employees) are not required to set targets, though they are encouraged to do so voluntarily. - What are the targets?
The specific targets will be outlined in a menu, which will be set via a legislative instrument in the coming weeks. Workplace Gender Equality Agency (WGEAwill circulate this menu after it is finalised, providing guidance on which targets employers can choose from. - When is the reporting period?
Employers will need to report on their selected targets in the 2025-2026 reporting period. This report is due to the WGEA in April-May 2026 as part of the annual workplace gender equality report that all eligible employers submit.
What should employers do now?
No immediate action is required from employers right now, however we recommend you:
- Consider conducting a Gender Pay Gap Analysis: This will help you understand your organisation’s current gender equality status and guide your target selection.
- Stay informed: WGEA will provide resources, guidance, and support to help employers with the target-setting process. This includes masterclasses, advisory services, and tools.
We’ll continue to keep you updated as more information becomes available.
Need help? Contact us
Should you need any further assistance or have questions regarding the exemption process, please feel free to reach out to our Employment Advisory team on 1800 888 479 or via the online enquiry form.
