Why has the law been changed?

WGEA data indicates that even when employers are aware they have a significant gender pay gap, many do not take action to close it. 

Setting and achieving targets was one of the recommendations of the Review of the Workplace Gender Equality Act (2012) in December 2021. The review aimed to find ways in which Australia could accelerate progress towards gender equality.

Specific, measurable and visible targets are already known to be mechanisms that deliver business outcomes and improved performance. Change is driven by both the analysis and planning to select targets and the enhanced transparency that comes with implementation and measuring of progress. Evidence shows setting targets can help accelerate the rate at which employers make progress against key gender equality metrics.

The targets legislation emphasises an employer's responsibility to achieve or at least improve gender equality in their workplace. It passed the parliament following an inquiry by the Senate Finance and Public Administration Committee. WGEA's submission to that inquiry included an overview of the evidence behind target setting and how employers are currently setting targets to achieve their goals.

The legislative changes require all large employers to consider gender equality a business priority and take action to make sure their employees have an equitable experience.

Employers will be accountable to their employees, their shareholders and the wider public.

Importantly, the legislation offers employers the ability to choose from an extensive range of evidence-informed targets, which align to common challenges highlighted in their annual gender equality reporting data and experienced by their employees. By committing to achieve 3 of the many targets on offer, an employer signals a desire to understand and address imbalance or inequality to ensure their workplace is both fair and safe.

Read WEGA's submission to the Senate Inquiry. 

Read the amended Workplace Gender Equality Act

Read the new Workplace Gender Equality (Gender Equality Targets) Instrument 2025

Who is impacted?

The legislation applies to "Designated Relevant Employers" (DREs). This is defined as an employer that directly employs 500 or more employees. WGEA also refers to them as "large" employers. 

This new law will affect around 2,000 of the approximately 8,000 employers who report to WGEA each year.

In a corporate group, where a parent company or subsidiary individually employs 500 or more people, they are each considered to be a DRE and therefore subject to the new requirements under the gender equality targets scheme. However, a subsidiary or parent company will not be considered a DRE if they would need to be combined with other entities in the corporate group to employ 500 or more employees.

Employers with 500 or more employees are required to select and achieve targets or improve against them.

Many employers are already setting targets. 50% of the large employers who report to WGEA already set targets, and 1 in 3 have set at least 3 of the targets in the menu.

What about small to medium employers?

The legislation does not apply to smaller employers with 100 – 499 employees.

However, these organisations can continue to voluntarily select and measure progress against targets if they wish to do so as a driver of improvement.

What about employers with overseas parent companies?

All entities operating within Australia are subject to local laws. 

The subsidiaries of global organisations which directly employ 500 or more people in Australia will be required to select and achieve or demonstrate improvement against targets.

How can you be sure the targets won’t adversely affect job security or career progression for any group?

The targets menu is comprehensive and not specific to men or women. Instead, the targets in the menu are focused on making progress for the under-represented gender or narrowing pay gaps, and for the action targets, generally designed to benefit the entire workforce.

How do employers select targets? 

Employers with 500 or more employees will select 3 targets from the range of choices contained in the Legislative Instrument. At least 1 target selected must be a numeric target.

All the targets able to be selected are drawn from data that employers already report to WGEA which acts to limit any additional reporting burden for employers. WGEA has provided an easy-to-read version of the targets menu below.

Employers will need to select their targets in 2026 when they report to WGEA.

Target selection is made against a baseline drawn from the data reported to WGEA in the year before the target cycle begins. This is the 2024/25 reporting period for private sector employers and 2024 reporting period for Commonwealth public sector employers. Private and public sector employers subject to the new law will receive a separate baseline report after lodgement of their 2024/25 and 2024 reports respectively.

What's on the menu?

The menu has been designed to give all employers the flexibility to choose targets that fit their unique circumstances.

There are 2 types of targets - action and numeric. They span the 6 gender equality indicators (GEIs).

In total, the menu has 9 numeric targets and 10 action targets - a total of 19 different types of targets to choose from. In some cases, there are also choices within a target.

Download a copy of the menu to share with your team.

Numeric targets require an employer to nominate how much they will improve against the baseline, for example close a gender gap, or increase representation of an under-represented gender group in a non-manager or manager category. The improvement is judged on a comparison between the baseline and against the data reported at the end of the 3-year target cycle.

Action targets involve implementing or adding to existing policies aimed at improving gender equality, such as introducing an employer-funded paid parental leave scheme, or expanding a scheme that already exists.

Employers need to select 3 different targets, remembering that one must be numeric. Eligibility criteria prevents an employer selecting an action target that their baseline report indicates already exists. Employers can choose which targets they select and how ambitious they want to be in terms of the improvement level committed to. More than one target against the same GEI can be selected and numeric targets can be reselected in a future cycle if an employer wants to keep progressing.

Are there some easier targets?

All targets progress gender equality, depending on the starting point for employers. Employers are encouraged to select meaningful targets, and work towards achieving them by the end of the 3rd year.

Does this disadvantage employers who have already been acting to improve gender equality – as they will have less targets to choose from?

It is true that employers that have already made progress on gender equality will have fewer action targets to choose from – as they’ve already implemented comprehensive policies. However, they will be well-placed to make progress against numeric targets – as many of the actions they’ve already taken will help achieve numeric improvements in gender equality.

Will employers be required to submit additional data to WGEA?

Employers are required to tell WGEA what targets they have selected and specify the actions or rate of improvement they are committing to achieve, but they will not be required to submit additional data to WGEA for the purpose of setting targets. 

This seeks to limit the additional reporting burden for employers, but requires effort to progress gender equality in the workplace.

WGEA can monitor target improvement and achievement using data that is already being reported to the Agency each year.

Will employers be able to set their own timeframes?

No. All targets have the same 3-year schedule. Employers have 3 years to achieve, or demonstrate improvement, against their targets.

WGEA encourages employers to break the targets into milestones over that period for their own planning and monitoring purposes. Progress will be reported annually back to the employer.

Will the targets be published?

The chosen targets will be published on WGEA’s Data Explorer alongside the employer’s data that is already published there. 

They will also be detailed in the employer’s Executive Summary, which is required to be provided to the governing body by the CEO.

What happens if an employer does not select their targets or achieve their targets in 3 years?

If an employer does not select 3 targets in the first year or meet, or demonstrate improvement on, each of their 3 targets at the end of the 3-year target cycle, they may be ineligible to tender for Commonwealth procurement above $80,000.  In this situation the employer will have the opportunity to provide a reasonable excuse. If WGEA accepts the excuse as reasonable, the employer will not be named as non-compliant. This is consistent with the existing enforcement requirements in the Act.

I’m a large employer with 500 or more employees, what do I need to do now?

The first thing employers need to do is understand the changes. It will be helpful to share this FAQ with your HR and leadership team. Your CEO will approve your selected targets when they sign off on your WGEA Gender Equality Report in 2026. Inform them about these new requirements. Work out how to involve them, and ideally also your Board, into your planning for being ready to select targets in 2026.

The next step is to discuss and determine which targets are right for you.

WGEA will provide comprehensive resources and support to help you determine how to choose the best targets for your organisation and work towards achieving them.

Sign up to our newsletter, visit our website or follow us on LinkedIn to receive updates on the changes and notice of new resources.

Before you select your targets, you should undertake a comprehensive gender pay gap (GPG) analysis.

This process helps to identify the unique drivers of the gender imbalances in each workplace. Once you know the drivers, you can identify the most effective gender equality actions to address them, and the targets should support these goals.

What support is available to employers?

WGEA is developing a suite of resources to help support employers through selecting and achieving targets. WGEA runs masterclasses and an advisory service that employers can sign up for and receive tailored advice and support. 

What if I have not yet undertaken a gender pay gap analysis?

WGEA runs free classes on gender pay gap analysis every month. We also have a comprehensive set of resources and tools to help employers consider the full suite of evidence-informed actions before they select their targets in 2026.

Will there be masterclasses and other resources specifically for setting targets?

Yes. WGEA provides masterclasses and employer drop in sessions to help employers. These will all follow from the data and insights provided from your GPG analysis.

Dr Leonora Risse's research paper Target Setting for Gender Equality: A review of the literature summarises the evidence behind setting targets for improving workplace gender equality. 

Download the paper.