New legislation requires 'designated relevant employers' (DREs) to select and meet gender equality targets.
A DRE is defined as an employer who directly employs 500 or more employees.
These employers will need to select and commit to achieve 3 targets from a menu of 19 options. At the end of 3 years, they need to meet or demonstrate improvement against each target selected.
The list of targets employers can select from is defined in the legislation and detailed in the WGEA Targets Menu Guide.
This FAQ provides answers to common questions about the new requirements. It also includes details of support available from WGEA to assist employers to select and implement effective targets.
For more information on how to select targets, the evidence-base for targets, or to register for WGEA's Targets Masterclass, head to wgea.gov.au/targets.
Summary of the changes
The 2021 review of the Workplace Gender Equality Act 2012 (the Act) recommended requiring employers to select and meet gender equality targets to accelerate progress towards gender equality.
WGEA data indicates that even when employers are aware they have a significant gender pay gap, many do not take action to close it.
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 passed the parliament following an inquiry by the Senate Finance and Public Administration Legislation Committee. WGEA's submission to that inquiry included an overview of the evidence behind setting targets and how employers are currently setting targets to achieve their goals.
The changes to the Act require 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 WGEA's submission to the Senate Inquiry.
Read the amended Workplace Gender Equality Act 2012
Read the new Workplace Gender Equality (Gender Equality Targets) Instrument 2025
Who is impacted?
‘Designated relevant employers’
The legislation applies to each employer (employing ABN) who directly employs 500 or more employees. This is about 2,000 of the 8,000 employers who report to WGEA each year. Collectively these organisations employ around 4 million people.
Casual employees are included in the 500 employees. Independent contractors are not. For more information on who is an employee for the purposes of WGEA reporting see our Reporting Guide.
Many of these employers already set targets. 56% set at least one gender equality target in 2023-24 and one in 3 set at least 3 of the targets now available in the Targets Menu.
Example
A corporate group may include both DREs and non-DREs, such as:
Employer A (directly employs 600 employees) = DRE
Employer B (directly employs 350 employees) = not a DRE
Employer C (directly employs 520 employees) = DRE
In this instance, each employing ABN is assessed individually. Only those ABNs that directly employ 500 or more employees are considered DREs (Employers A and C). Non-DREs within the same corporate or submission group are not required to select targets (Employer B).
Corporate groups
In a corporate group, the parent company is subject to the new requirements if it directly employs 500 or more employees. Any subsidiary within the corporate group with 500 or more employees is also subject to the new laws.
However, only the entity (or entities) that meet the 500-employee threshold is required to select targets. A subsidiary or parent company will not be considered a DRE if it would need to be combined with other entities in the corporate group to employ 500 or more employees.
Industry-wide targets
There are no industry-specific targets, but employers can use WGEA’s Data Explorer to compare their performance with others in their industry. These insights may help to guide the development of relevant and appropriate targets.
Local and state governments
The legislation only applies to DREs who are required to lodge an annual Gender Equality Report with WGEA.
State and Territory public sector employers are not required to report to WGEA.
Small and medium sized employers
The targets requirements do not apply to employers with fewer than 500 employees.
However, smaller employers can use the methodology and the Targets Menu to select and measure progress against targets if they wish to do so as a driver of improvement.
Employers with overseas parent companies
The obligations apply to employers who directly employ 500 or more people in Australia, regardless of whether the head office is here or overseas. This includes subsidiaries of global organisations that directly employ 500 or more employees in Australia.
Changes to company structures
As targets are selected at the individual DRE (employing ABN) level, company restructuring can affect progress towards or the achievement of targets.
Where an employer undergoes an organisational restructure or change in their business operations, or an acquisition, merger or divestment:
- If the ABN remains the same, the baseline and selected targets stay with that ABN.
- If the acquired or merged business is consolidated into an existing ABN which is a DRE, the baseline and selected targets stay with that existing ABN.
- If a new ABN is created and is a DRE, new targets will need to be selected for that entity in the reporting period after the baseline year.
If a company restructure impacts on an employer’s ability to meet or demonstrate improvement against selected targets, resulting in non-compliance then the employer will be offered the chance to provide a reasonable excuse and should include details of the change and impact.
An employer cannot alter targets once the 3-year cycle has commenced in response to a change in the structure of the entity.
If there is a risk that an upcoming restructure may not support the achievement of certain targets, organisations should avoid selecting such targets until the uncertainty is resolved.
Changes to employer size
An employer ceases to be a DRE if it employs fewer than 400 employees for a continuous period of 6 months.
WGEA will determine whether an employer remains a DRE each year when they lodge their Gender Equality Report. Once determined, the employer will no longer be classified as a DRE and will no longer be subject to the targets requirements. However, WGEA encourages employers to continue to pursue their selected targets internally.
If an employer stops being a DRE for a period, but later resumes its status as a DRE, they must re-establish their baseline and commence a new target cycle. If they fail to select targets in the year after their new baseline, they may be found to be non-compliant with the Act.
Timeline
Employers covered by the legislation will need to select their 3 targets when they lodge their Gender Equality Report in 2026. At the end of 3 years they will have to meet or demonstrate improvement from their baseline against each target.
Employers only need to select targets once every 3 years.
Employers don’t need to wait. They are encouraged to start preparing for targets now. Reviewing their most recent information (such as their gender pay gap analysis and information reported to WGEA) will help employers identify and select meaningful targets that align with their workplace priorities. However, WGEA will assess ‘meeting or demonstrating improvement’ by comparing the information an employer reports for their final year of the target cycle to the information they report to WGEA in their baseline year.
After the first targets cycle (in 2029)
When employers report to WGEA in 2029, they will select 3 new targets using the information reported in 2028 as the baseline.
The process of selecting targets, tracking progress, and assessing compliance will continue in rolling 3-year cycles.
Targets baseline
The information employers report to WGEA for their baseline year plays a critical role in helping them to select appropriate targets and measure their progress. WGEA will also use the baseline year information to assess whether an employer has met or demonstrated improvement against each of their targets.
For employers selecting targets in 2026:
- private sector employers will use the 2024-25 reporting period as their baseline year.
- Commonwealth public sector employers will use the 2024 reporting period as the baseline year.
For employers that become DREs in later years, the baseline year will be the first year they report to WGEA as a DRE.
WGEA’s Finding Your Baseline Information Guide provides guidance on where employers can find their baseline results for each target in their WGEA reports and how to determine eligibility to select a target.
Selecting targets
In 2026, employers will need to select and commit to achieve 3 targets when they complete their annual Gender Equality Reporting.
The targets employers can select are contained in a menu of 9 numeric and 10 action targets. Each of the targets has been included in the menu because it is backed by evidence that it works to improve equality in workplaces. In some cases, there are additional choices within a target.
Every target is aligned to information employers already report to WGEA, which limits the additional reporting requirement for employers.
Employers will select their targets on the WGEA Employer Portal when they report to WGEA in 2026. Detailed guidance on how to select targets in the WGEA Employer Portal is coming soon.
Download the Targets Menu
Under the legislation, employers must select at least one numeric target.
Many of the action targets can help to achieve the numeric targets on offer.
To confidently select targets that work, employers should consider their unique workplace context and the data from their comprehensive gender pay gap analysis. WGEA’s Target Selection Guide can help employers with the process of selecting effective targets from the menu.
Download the WGEA Target Selection Guide
Numeric targets
When selecting numeric targets, employers must nominate a percentage point improvement they commit to meet. In the Targets Menu this is noted as ‘_pp’. This refers to the direct difference between 2 percentages. For example, if 4% of employees in a manager category are women in the baseline year, and an employer selects to increase it to 6%, the percentage point increase is 2 percentage points (from 4% to 6%).
Employers are encouraged to nominate realistic percentage point changes that will lead to improvements in workplace gender equality. Employers cannot nominate to maintain the metric from their baseline. All numeric targets must reflect a measurable percentage point shift.
The degree of precision employers can use when selecting numeric targets should match that shown in the Executive Summary:
- gender pay gap: round to one decimal place
- pay quartiles and composition: use whole numbers only (no decimals)
At the end of the 3-year target cycle, an employer can re-select a numeric target, provided the new target is an increase or reduction compared to the new baseline year.
To assist with target selection and monitoring, employers who plan to select a target in GEI 1 – gender composition of the workforce, should align their data analysis and Action Plans to WGEA’s manager and non-manager categories. This is because the manager and non-manager categories in the Targets Menu align to the manager and non-manager WGEA reporting categories. Employers can convert their job categories and position titles to the WGEA categories using the Reporting Guide.
Employers must select at least one numeric target and may select 2 or 3 numeric targets if they wish.
Action Targets
Action targets must constitute new entitlements or specify things that the employer’s policies or processes did not provide for in the baseline.
Eligibility for action targets is based on your organisation’s baseline year data. If you reported that a specific action was already in place in your baseline year report, it cannot be selected as part of an action target.
For example, an employer has an employer-funded parental leave scheme for primary and secondary carers, they cannot select the target to introduce such a scheme if they have already reported this to WGEA in their baseline year.
Should employers do a comprehensive gender pay gap analysis before selecting targets?
WGEA recommends that all employers undertake a comprehensive gender pay gap analysis before selecting their targets. This analysis helps identify where gender inequalities exist and supports the selection of relevant and evidence-based targets.
If an employer’s baseline shows that a comprehensive gender pay gap analysis hasn’t been completed in one in the past 2 reporting periods, it can also be selected as a target if it is undertaken to prepare for selecting targets.
What if we have already taken a lot of action?
In some cases, employers may find that their baseline limits the number of eligible targets available for selection. This may occur where actions are already in place, or where gender pay gaps are very small.
Employers are encouraged to select targets that reflect meaningful areas for improvement, even where progress may be incremental. WGEA will continue to provide guidance and support to help employers to identify suitable targets based on their baseline data.
What if we have achieved all the action targets?
In the rare case an employer has implemented every action target on the menu, they will need to select 3 numeric targets.
Are there some easier targets?
All targets progress gender equality. Employers are encouraged to select meaningful targets, and work towards meeting them by the end of the 3-year target cycle.
Will employers be required to submit additional data to WGEA?
Employers are required to report their target selection to WGEA including the percentage point change for their numeric targets and the specific actions for action targets.
WGEA and employers can monitor progress for each target against information employers lodge in the annual Gender Equality Report. This limits the additional reporting requirement and allows employers to direct their effort towards actions that progress gender equality in their workplace.
Do employers need to select targets for agreement or award-covered employees?
Yes. Employers must select 3 targets for all of their employees.
Targets apply to the employer’s workforce as reported to WGEA, regardless of whether employees are covered by an enterprise agreement, award, or individual contract.
Employers may choose targets that address issues which are common in award-covered roles, such as representation in non-manager categories or pay quartiles.
Board/governing body involvement
Getting key decision-makers involved early, including the Board, is highly advisable.
The CEO is required to sign off on the WGEA Gender Equality Report, which contains each selected target. Selected targets cannot be changed once an employer has lodged its Gender Equality Report.
Selected targets will be included in the Executive Summary. It is a legislative requirement for the CEO to share the Executive Summary and Industry Benchmark Report with their governing body.
Can an employer change their targets after selecting them?
No. Employers must ensure the accuracy of the information they provide when they select targets and lodge their Gender Equality Report, as no further changes to their selected targets can be made within the target cycle.
Considerations for submission groups
If some or all of a corporate group’s subsidiaries have the same or similar gender equality policies, strategies and actions, these employers can report to WGEA as a ‘submission group.’
Each DRE in a corporate group or submission group can select:
- the same action targets, provided the targets are relevant and appropriate for each DRE
- the same targets with different details (for example, the same numeric targets but nominate a percentage point improvement or reduction that reflects the employer’s workforce)
- completely different targets.
Each DRE must formally select its own targets and meet or demonstrate improvement against them, even if those targets are the same across the group.
If my organisation already sets targets, do we need to select new ones?
WGEA encourages employers to build on their current goals. If an employer has set a target in their workplace that is not on the menu, they can still continue to work towards that target, but it will not be part of their WGEA target selection.
Employers cannot design their own targets. However, as long as the target is selected from the menu and represents an improvement from the baseline, employers can align it with an internal numeric target already in place. Internally set targets are separate from WGEA targets requirements. For example, if an organisation already tracks gender composition in management roles and aims to improve it, they may select the corresponding numeric target from the menu and nominate a percentage point improvement above the baseline.
In the annual Reporting Questionnaire, WGEA asks whether organisations voluntarily set gender equality targets. If an employer has previously reported that they set internal numeric targets, they can still select the corresponding numeric target from the menu. They will just need to nominate a specific percentage point improvement from their baseline.
For action targets, internally planned actions that will be implemented during the 3-year target cycle are valid, provided they are selected from the menu and will be an improvement from the baseline.
Will WGEA publish the targets selected?
WGEA will publish the 3 targets each employer selects on the Data Explorer.
WGEA will include the target selection and the employer’s progress each year in the employer’s Executive Summary, which the CEO must provide to the governing body.
Employers will have the opportunity to include commentary on their selected targets in their Employer Statement. This may include rationale for the target selection, how the targets align with broader organisational values and strategies, and context around progress or challenges.
Will my manager or non-manager gender pay gap data be published if I select the reducing the gender pay gap for managers or non-managers target?
If an employer selects this target, WGEA will publish the baseline data on the Data Explorer. Only the specific type and category of data selected by the employer will be published. For example, if an employer selects the target to close their median total remuneration gender pay gap for managers, only that figure will be published. The average total remuneration gender pay gap for managers and non-managers would not be published.
Can employers select the same target more than once?
Each target can only be selected once per target cycle. Where a numeric target has multiple categories that can be chosen, employers can only select one of these.
For example, if an employer selects the ‘Increased representation by pay quartile’ target, they cannot select to increase the representation of the under-represented gender in the upper pay quartile and the lower pay quartile.
Employers can re-select a numeric target in the next target cycle, if their nominated percentage point is an improvement on their new baseline.
If an employer has achieved gender equality in the workforce, do they still need to select targets?
Yes, employers will still need to select 3 targets, even if they have achieved gender balance. In this situation, employers should consider selecting:
- multiple numeric targets to further refine workplace gender equality improvements within occupations or manager categories
- action targets that strengthen existing policies to support ongoing equality.
There are always opportunities to improve and sustain progress.
What happens if an employer does not select targets?
If an employer does not select and commit to achieve 3 targets in the first year after the baseline year, they are non-compliant with the Act. WGEA may name non-compliant employers who do not have a reasonable excuse. Non-compliant employers may not be eligible for government contracts.
The employer will have the opportunity to provide WGEA with a reasonable excuse for the non-compliance. If WGEA accepts the excuse as reasonable, the employer will still be non-compliant but will not be named as non-compliant. This is consistent with the existing enforcement requirements in the Act.
Meeting or demonstrating improvement
At the end of 3 years after selection, employers have to meet or demonstrate improvement against the baseline for each of their targets.
WGEA will assess whether an employer has met their targets, or demonstrated improvement, by comparing the baseline information to the information reported at the end of the target cycle.
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 in their Executive Summary following completion and lodgement of their Gender Equality Report.
For information on how WGEA approaches compliance see WGEA’s Compliance Strategy.
The assessment of meeting or demonstrating improvement varies based on the type of target each employer selects.
Gender equality target | When target is met
| Demonstrated Improvement
|
Increased representation (managers) Representation of [under-represented gender] in [one manager category or for managers overall] increased by [_pp]. Manager category options: • Key Management Personnel • Other executives and general managers • Senior managers • Other managers | Nominated percentage point change specified by the employer has been achieved at the end of the target cycle | This could be any percentage point improvement from the baseline. For example, if the employer nominated a 10pp change, a demonstrated improvement could be anywhere between 0.1 – 9.9pp.
|
Equal remuneration and gender pay equity policies Add at least 2 of the following to your policy: a. remuneration review processes without gender biases b. transparency about pay scales and salary bands c. managers being held accountable for gender pay equity outcomes.
| Employer's policies now provide for the 2 specified things at the end of the target cycle. | Employer's policies now provide for one of the specified things. The requirement under this target is that "the employer's policies provide for the specified things". It would not be sufficient for an employer to be in the process of developing and implementing a policy.
|
Introduce employer-funded parental leave Create an entitlement for employer-funded [primary parental leave OR parental leave that does not distinguish between primary/secondary carers].
| Employer provides the specified entitlement at the end of the target cycle. | Demonstrating improvement would not be relevant in the context of this target. Either the employer provides one of the specified entitlements at the end of the target cycle, or it does not. |
What happens if an employer does not meet or demonstrate improvement against their targets in 3 years?
If an employer does not meet, or demonstrate improvement against, each of their 3 targets at the end of the 3-year target cycle, they are non-compliant with the Act. WGEA may name non-compliant employers who do not have a reasonable excuse. Non-compliant employers may not be eligible for government contracts.
The employer will have the opportunity to provide WGEA with a reasonable excuse for the non-compliance. If WGEA accepts the excuse as reasonable, the employer will still be non-compliant but will not be named as non-compliant. This is consistent with the existing enforcement requirements in the Act.
Only the DRE will be non-compliant. The compliance status of other related entities in the corporate structure, including the parent company, will not be affected.
What constitutes a ‘reasonable excuse’?
WGEA will assess an employer’s reasonable excuse on a case-by-case basis. You can find further guidance on this in WGEA’s Compliance Strategy.
What happens if we meet our targets before the end of the 3-year target cycle?
If an action target is fully achieved before the end of the 3-year target cycle, that’s a positive outcome. There is no requirement to modify the target, but the employer may choose to build on it in future target cycles. The aim is to support long-lasting change, so early achievement is encouraged and can provide a strong foundation for further progress.
For numeric targets ongoing monitoring and action are essential because it is possible to achieve a numeric target during the targets cycle, but not meet it in the final year, when it is required for compliance.
Can an employer meet an action target requiring a policy by having a strategy instead?
No. An employer cannot meet an action target that requires having a policy by only having a strategy in place. If an employer currently has a strategy but not a policy, they may be eligible to select that action target provided that creating or updating a policy would represent a new action. If an employer already has a policy and a strategy, but the policy does not include the target’s required options, they can select the target and update the policy to add those options.
Policies provide employees specific entitlements or rights and define the limits (dos and don’ts) within which decisions must be made. They are widely communicated and available to all staff. A strategy is a plan of action designed to achieve one or more of an organisation’s objectives. They relate to how an organisation allocates and uses materials and human resources and require an executive decision.
Examples of targets where a ‘policy’ is required:
- Equal remuneration and gender pay equity policies. If an employer has a strategy but not a policy in place in the baseline, they can select the target and develop a policy that includes at least 2 of the specified options.
- Improve flexible work offerings for employees. If an employer has a strategy but not a policy in place in the baseline, they can select the target and develop a policy that includes at least 4 of the specified options.
- Improve policies regarding preventing, reporting and responding to sexual harassment. If an employer has a strategy but not a policy in place in the baseline, they can select the target and develop a policy that includes at least 4 of the specified options.
Possible concerns
How can you be sure the targets won't adversely affect job security or career progression for any group?
The targets employers can select are not specific to men or women. Action targets benefit the entire workforce while numeric targets focus on gender-balance by increasing the proportion of the ‘under-represented gender’.
What evidence is there that targets actually work?
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
Does this disadvantage employers who have already been acting to improve gender equality – as they will have fewer targets to select?
It is true that employers that have already made progress on gender equality will have fewer action targets to select because they have already implemented comprehensive policies and actions. However, they will be well-placed to improve against numeric targets – as many of the actions they have already taken will help improve balance and fairness in composition and remuneration.
Isn't it going to cost a lot of money?
Some employers may be concerned about the cost of meeting targets. It is important to note that not all targets require financial investment.
Many numeric targets focus on shifting representation or reducing gender pay gaps, which can often be achieved through changes to processes, policies and decision-making rather than additional funding.
The goal should be to drive meaningful progress towards gender equality in a way that is practical and sustainable for the organisation.
Next steps and available support
If you’re a HR leader or a manager at an employer covered by these changes you may want to consider sharing this FAQ with your CEO and leadership team. Your CEO (or equivalent) will have to approve your selected targets and commit to achieving them when they sign off on your WGEA Gender Equality Report in 2026. Inform them about these new requirements.
Engage your stakeholders. That includes the CEO, but also your employees and your board or governing body.
Download WGEA’s Targets Selection Guide. This will help you to plan the steps to take now to be able to confidently select effective targets in 2026. The first critical step is to conduct or review your comprehensive gender pay gap analysis. This will help to identify the drivers of gender imbalance in your workplace, create an Action Plan and select targets that meet your unique challenges.
If you have completed a gender pay gap analysis and have an Action Plan you can sign up for a Targets Masterclass with WGEA’s gender equality experts. WGEA also has an advisory service where employers can receive tailored advice and support. If you haven’t completed a gender pay gap analysis, you can sign up for a Masterclass. WGEA runs the Gender Pay Gap Masterclass regularly.
Sign up to our newsletter, visit our website or follow us on LinkedIn to receive updates on these changes and notice of new resources.
Bookmark wgea.gov.au/targets. This page will continue to be updated as new resources become available.
Take Action
There are some key actions you can take to help improve gender equality in your workplace.
Book into a free masterclass to learn how to take effective action to narrow your organisation's gender pay gap.
Learn how to conduct a gender pay gap analysis of your workplace to find any areas of imbalance.
Use the Action Planning Playbook to find evidence-informed actions that can address inequality in your workplace.