Businesses under greater scrutiny as Australia unveils first plan for gender equality

Businesses have been put on notice they will miss out on lucrative federal government contracts if their workplace doesn’t pass gender equality targets.

Businesses that want a slice of the federal government’s $70bn contracts will have to pass a new gender test, which will include the makeup of companies’ boards and workforce.

The changes are under Australia’s first national strategy for gender equality that will also lead to women taking parental leave being paid superannuation next year.

Minister for Women Katy Gallagher laid out the government’s sweeping plans to curb gender-based violence, disproportionate rates of unpaid and paid caring, and economic insecurity facing women during an address to the National Press Club on Thursday.

The speech came with a promise that the government’s new targets wouldn’t be another “empty promise” to the women and girls of Australia”.

“I say this to make the simple point that in 2024, women in this country, as a general rule, continue to be less safe, have less choice and be less economically secure than men. This is something that the Albanese government is determined to change,” Senator Gallagher said.

Minister for Women Katy Gallagher spoke about equality for ‘all Australians’. Picture: NCA NewsWire / Martin Ollman

“The national strategy envisages a future of equality in Australia for all Australians.

“That means an Australia where your gender doesn’t define how your life unfolds, the rights you enjoy, the choices you make, the chances or opportunities you get or pursue.

“This is about bringing people together. When an economy and society works for women, it works for us all.”

Under plans to improve women’s economic security, the government will use its purchasing power to muscle businesses with 500 or more employees to commit to gender equity targets in their workplaces.

Targets will focus on the gender makeup of their senior boards and their workforce; equal pay; flexible working arrangements; workplace consultation on gender equality; and efforts to prevent and address sexual harassment.

Senator Gallagher said about 35.7 per cent of women were unable to start work or work more hours because they cared for children. Picture: NCA NewsWire / Martin Ollman

Ms Gallagher said the government had also set a 50 per cent target of women's representation on advisory boards.

“Every year, the government spends $70bn to procure goods and services and we think there’s more that can be done to make sure women are getting a fairer slice of that spending,” Senator Gallagher said.

“Not only will businesses have to set targets, but they will also have to show progress towards them.”

Senator Gallagher used the speech on the eve of International Women’s Day to also announce the Albanese government would pay superannuation on paid parental leave in a move to help close the gender superannuation gap.

Parents with babies born or adopted from July 1, 2025 who receive the minimum-wage support scheme will receive an additional 12 per cent as payment into their super funds.

According to Industry Super Funds, women retire with 30 per cent – or $67,000 on average – less than men.

Paying superannuation on PPL was a key recommendation of the Women’s Economic Equality Taskforce (WEET) and follows the government’s expansion of the scheme, which can be shared by both parents, to a full six months by 2026.

Women do more than nine hours a week more unpaid work and care than men. Picture: NCA NewsWire/Gaye Gerard

The costings of the major policy change will be unveiled in the upcoming May budget.

Asked if the government had plans to compensate for the super gap faced by women who already had children, Ms Gallagher said the new changes were about “bolstering” the future.

“Older women who have low super balances didn’t have a paid parental leave system to pay them leave, they have missed out on a lot and that is for sure,” she said.

“Not every problem can be solved about women’s financial insecurity through the super system, but this is a good way of dealing with one of those issues.”

Ms Gallagher said she wasn’t prepared to put a set target on closing the super pay gap, which sits between 22 to 32 per cent.

“We are looking across government, the work every minister does is informed by that priority,” she said.

“It is never the end. We don’t step back from having to manage the budget responsibly and take the decisions about what we can afford and when we can afford it and how it competes with pressures on the budget.”