Developments in discrimination laws

On 27 March 2025, the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Act 2024 (WGEA Act) came into effect. The WGEA Act requires employers with 500 or more employees to select and commit to achieving three gender equality targets within 12 months and achieve or improve on the targets within three years. 

Key takeaways

The WGEA Act requires designated relevant employers (DREs), which are those with 500 or more employees, to commit to, achieve or improve upon and report to the Workplace Gender Equality Agency (WGEA) on measurable targets based on the following six gender equality indicators:

1. the gender composition of boards or governing bodies;
2. the gender composition of the workforce;
3. the gender pay gap;
4. flexible working arrangements and support for parents and carers;
5. workplace consultation on gender equality; and
6. efforts to prevent and address sexual harassment.

Employers will no longer be DREs if the number of employees they have drops below 400 for a continuous period of six months.

DREs can choose 'action' or 'numeric' targets, although at least one target must be numeric. Numeric targets may involve percentage changes in gender representation or pay gaps, while action targets may require implementing or improving policies or strategies. WGEA will publish each DRE’s selected targets.

DREs must select at least three targets and achieve or improve on them within three years. They cannot alter or abandon the targets once selected. After three years, new targets must be chosen for the next period. 

Given employers are required to have made efforts to prevent and address sexual harassment to comply with their legal obligation under work health and safety legislation and the Sex Discrimination Act 1984 (Cth), we recommend DREs select at least one of their targets from the sixth gender equality indicator “efforts to prevent and address sexual harassment”. 

What are the consequences of non-compliance?

DREs will be non-compliant if they fail to achieve or show improvement on their targets within three years without a reasonable excuse. Non-compliant DREs without a reasonable excuse may be publicly named by WGEA and may be ineligible to contract with the Australian Government.

The Government says that these changes will make Australia the first country in the world to require employers to commit to gender equality targets. The changes indicate that Australia is not following the reversal of diversity and equality initiatives in the US.