Gender Equality Targets: What Employers Need to Know

Australia’s workplace gender equality framework is entering a new phase following the recent amendments to the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Act 2025. Large employers will be required not only to report on gender equality outcomes, but also to set measurable gender equality targets and demonstrate progress against them.

The reforms are designed to accelerate progress on gender equality and increase organisational accountability. With gender pay gap data already publicly available, employers should expect heightened scrutiny from regulators, employees, investors and prospective recruits.

Who is affected?

The new target-setting requirements apply to employers that directly employ 500 or more employees in Australia, including the Commonwealth public sector. Those organisations will be required to select and report against gender equality targets as part of their Workplace Gender Equality Agency (WGEA) reporting obligations.

Employers with fewer than 500 employees are not subject to the mandatory target-setting regime, although many may choose to adopt voluntary targets as part of broader diversity, equity and inclusion strategies.

The reforms build on existing obligations under the WGEA framework, which already requires private sector employers and Commonwealth public sector employers with 100 or more employees to submit annual gender equality reports.

What are the reporting obligations?

Eligible employers must select three gender equality targets from the menu prescribed by WGEA. At least one of the selected targets must be a numerical target, while the remaining targets may be numerical or action based.

The targets are drawn from WGEA’s six Gender Equality Indicators, including:

• gender composition of the workforce;
• gender composition of governing bodies;
• equal remuneration between women and men;
• workplace flexibility and workforce participation;
• consultation with employees on gender equality matters; and
• the prevention of discrimination, sexual harassment and related workplace risks.

Private sector employers were required to select their targets before 31 May 2026. Once selected, employers are expected to work towards those targets over a three-year cycle and will be required to demonstrate that the target has either been achieved or that meaningful progress has been made. It is important to note that target selection and progress reporting will be publicly available, creating greater transparency around organisational performance.

Enforcement Options and Possible Reputational Risk

While the reforms do not introduce direct financial penalties for failing to meet a target, they significantly strengthen accountability mechanisms. Employers that fail to achieve a target must demonstrate progress against their baseline position. Failure to do so may result in a finding of non-compliance under the legislation. The consequences of non-compliance can be substantial, as the WGEA has powers to publicly identify non-compliant employers, creating obvious reputational risks for businesses operating in increasingly transparent labour markets. A non-compliant employer may also lose its Certificate of Compliance, potentially affecting eligibility for Commonwealth government contracts, grants and other forms of procurement.

As stakeholders continue to focus on environmental, social and governance performance (ESG), organisations should expect gender equality outcomes to form part of broader assessments by investors, customers and prospective employees. Public reporting means that a lack of progress may have consequences extending well beyond regulatory compliance.

Board and Executive Accountability

These amendments place gender equality firmly within the view of boards and executive leadership teams. The requirement to select, monitor and achieve measurable targets will require strategic oversight, governance frameworks and ongoing performance reviews.

Boards should ensure they understand the organisation’s gender equality data, identify areas of risk or underperformance, and receive regular reporting on progress against selected targets. Likewise, executive teams should be prepared to demonstrate how workforce planning, remuneration practices, leadership development, flexible work arrangements and workplace conduct initiatives are contributing to measurable outcomes.

For many organisations, the new requirements will represent a significant shift from compliance-focused reporting to active performance management. Employers that begin assessing their data and developing implementation plans now, will be better placed to meet both their legal obligations and stakeholder expectations.

Key Takeaways

Australia’s new gender equality targets regime represents a significant shift from reporting on workplace gender equality to actively demonstrating progress. It is advisable that employers who fall within the scope of the WGEA regime should begin planning now to ensure they have the governance structures, data and accountability mechanisms in place before the new requirements take effect. This is important since:

• Organisations must be able to demonstrate that they have either achieved their selected targets or made measurable progress against them. As failing to do so may result in a finding of non-compliance.
• Non-compliance carries significant reputational and commercial risks, including potential public identification by WGEA and loss of eligibility for certain Commonwealth Government contracts and grants.
• Boards and executive teams should treat gender equality targets as a governance priority, with oversight of target selection, implementation, monitoring and reporting forming part of broader organisational risk management and Environment, Social and Governance (ESG) responsibilities.

• Employers that proactively review their workforce data, identify areas of gender inequality and develop tailored action plans will be best placed to meet both their legal obligations and stakeholder expectations.

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