Major change for group of Aussie workers after bill passes parliament to improve gender equality in the workplace

A big change being brought in across thousands of businesses is expected to benefit almost four million Aussie workers.

Large businesses in Australia will undergo a major change to address workplace gender equality after a Bill passed federal parliament on Tuesday.

Recent data published by the Workplace Gender Equality Agency (WGEA) found the total remuneration average gender pay gap in Australia was a difference of $28,425 over the course of one year.

A review of the Workplace Gender Equality Act identified target setting an effective way to improve gender equality in the workplace.

The average gender pay gap in Australia is $28,425 over the course of one year. Picture: NewsWire / Gaye Gerard

Organisations that employ more than 500 people in Australia are now required to implement three gender equality targets into the workplace and will have three years to achieve or make progress on their targets.

Employers can choose which targets they select from a menu, with priority areas covering the gender pay gap, workforce and board composition, support for carers and parents, consultation and prevention of sexual harassment.

The changes will apply to nearly 2000 employers and benefit an estimated 3.9 million employees.

WGEA found 56 per cent of employers covered by these reforms already had gender equality targets, and about one-third had set three or more targets that met the new requirements.

Employers who fail to meet the new requirements risk losing Commonwealth contracts and will be named and shamed by the agency.

WGEA chief executive Mary Wooldridge said the new requirement was introduced to accelerate employer actions to ensure all employees were equally valued, rewarded and safe at work. Picture: NewsWire / Martin Ollman

WGEA chief executive Mary Wooldridge said the new requirement was introduced to accelerate employer actions to ensure all employees were equally valued, rewarded and safe at work.

“While many employers are making great progress on gender equality, there is also a large group of employers who are not,” she said.

“Employers indicate that even when they are aware they have a significant gender pay gap, many haven’t taken action to reduce it.

“Targets are specific, time-bound and measurable objectives that set a benchmark for employers to work towards. The evidence available shows they are effective in driving real change.

“By introducing a target-setting requirement, Australia is ensuring large employers are publicly accountable to take action and make demonstrable progress towards gender equality.”

Sex discrimination commissioner Anna Cody said the change didn’t go far enough. Picture: NewsWire Handout

Australian Human Rights sex discrimination commissioner Anna Cody welcomed the change but said it did not go far enough to really understand what was happening in Australian workplaces and who was being left behind.

Dr Cody said more data was also needed to understand who made up our workplaces as well as an additional target for employers of more than 100 people.

“It’s absolutely important that we have these targets, it’s another way of driving down the gender pay gap, because we know that if we don’t measure change then we don’t count it and it doesn’t actually improve,” she said.

“Sometimes we make the assumption that we’re improving, but unless you actually look at the data we don’t know that for sure.

“So we can have this sense that everything’s getting better, but when you actually look at the gender pay gap, it’s still there for 79 per cent of employers, so we really need to drive further change.”

The Business Council of Australia chief executive Bran Black welcomed the flexibility this scheme provided employers.

“Ongoing consultation will be critical in understanding how targets will be implemented,” he said.

Originally published as Major change for group of Aussie workers after bill passes parliament to improve gender equality in the workplace