Australia Forces Big Business to Close Gender Gap

April 25, 2025 Comments (0) 2 Mins Read

Australia has made global headlines by enacting a world-first law that forces its largest employers to set and achieve gender equality targets—putting real accountability behind closing the gender gap.

Under the new Workplace Gender Equality Amendment (Setting Gender Equality Targets) Act 2025, all private sector employers with 500 or more staff must select three gender equality targets from a menu of numeric and action-based goals. These targets cover critical areas such as reducing the gender pay gap, boosting women’s representation in leadership, supporting flexible work, and preventing sexual harassment. At least one target must be numeric, ensuring measurable progress.

Workplace Gender Equality Agency (WGEA) CEO Mary Wooldridge emphasised the significance:

“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.”

Employers have three years to show results or risk serious consequences. Those who fail to make progress may be publicly named and could lose eligibility to tender for Commonwealth contracts2 4. The government hopes this public accountability will break the cycle of inaction that has stalled progress for years.

Assistant Minister for Women, Kate Thwaites, called the reforms “world-leading,” adding:

“These world-leading reforms will help drive gender equality in workplaces right around the country, as our Government works with employers to close the gender pay gap and ensure workplaces are fair, respectful, flexible and safe for all employees.”

Employers will choose their targets between April and May 2026, with public sector organisations following later that year. The WGEA will provide support to help businesses select and implement meaningful targets.

Diversity Council Australia CEO Catherine Hunter summed up the mood:

“This world-first legislation signals that Australia is serious about gender equality, setting a new global benchmark and reinforcing our commitment to the United Nations Sustainable Development Goals.”

With these sweeping changes, Australia is not just talking about workplace gender equality—it’s making it mandatory, measurable, and impossible to ignore.