New Gender Equality Targets requirement

What is the new Gender Equality Targets requirement?

From 1 April 2026, employers are required to select and commit to achieve 3 Gender Equality targets in annual reporting to WGEA.

This requirement applies to large employers who directly employ 500 or more employees in Australia.

The targets employers can select are defined in a menu of 9 numeric and 10 action targets. Each of the targets are meaningful and has been included in the menu because it is backed by evidence that it works to improve equality in workplaces.

As the intention is to improve outcomes, employers must select at least one numeric target in order to demonstrate measurable progress.

The CEO must sign off on the WGEA Gender Equality Report, which contains the selected targets.

Selected targets will be published and available for employees, industry peers, the media and shareholders to access on the employer’s page on the WGEA Employer Data Explorer, alongside their employer gender equality performance across the board.

Progress on targets will be measured annually and reported to directors via the WGEA Executive Summary, which is required to be provided to boards.

At the end of 3 years, in 2029, employers have to meet or demonstrate improvement against each of their targets. Those that don’t, will be non‑compliant with the Act. WGEA may publicly name employers who don’t provide a reasonable excuse. Non‑compliance can also preclude employers from tendering for government contracts.

The process of selecting targets, tracking progress, and meeting or demonstrating improvement will then continue in rolling 3-year cycles. 

Although small and medium-sized employers are not required to submit targets to WGEA, they are also encouraged to seize the benefits of setting and working towards targets for gender equality by building them into their normal business planning.

Conversations for boards to have with management

Choosing targets that are backed with a plan to achieve them sets employers up for success and mitigates reputational risk. Target setting is intended to improve fairness and close the gender pay gap, and WGEA encourages all companies to approach the exercise in this spirit.

While targets are signed off by the CEO, boards have an important oversight role. Suggestions of questions to drive discussion at the board level when targets are presented include:

• what drivers were identified in the most recent comprehensive gender pay gap analysis and how do these targets address them?

• how do the targets tie into the goals in the Gender Equality Action Plan?

• what is the plan to implement them?

• how is the achievement of these targets reflected in management KPIs?

• how – and how often – will progress against the selected targets be reported to the Board?

• what else can the Board be doing to authorise action and demonstrate commitment to positive change?

Considering the targets selected in the context of the organisation’s broader people strategies will support positive outcomes.

This will include:

• reviewing Gender Equality Actions Plans and confirming that governance processes are in place to properly implement the plan and achieve the selected targets

• expecting targets decision-making to be grounded in robust analysis and application of a strong rationale.

Choice of targets is a key design element

Employers can choose targets that reflect their current gender equality maturity. Employers are encouraged to select targets for meaningful areas for improvement, even where progress may be incremental. 

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 to improve balance and fairness in composition and remuneration and reduce the gender pay gap. 

Regardless of employer maturity, there are plenty of target choices, with 97% of employers eligible to select targets from at least 12 of the 19 menu options and every employer having at least 8 options.

The evidence for targets

Evidence shows that setting targets works to achieve business outcomes. This is also true for gender equality targets.

Targets work when they are data-driven, informed by an evidence-based plan and there is transparency about progress and accountability for the outcomes. They also need to be part of a holistic approach which emphasises that progress benefits everyone and aligns with organisational values, with a focus on fixing systems and removing biases.

Targets help workplaces to move from good intention to effective actions. This has meaning to employees. They reflect and reinforce an organisation’s commitment to ensuring gender is no longer an influence on access to opportunity, reward, safety or thriving at work.

In conclusion

The world-first requirement for employers to achieve improved employee outcomes strengthens our nation’s work to drive positive progress to delivering fair, safe and equal experiences at work for millions of Australian women and men.

Information about the new legislation and how to select effective targets can be found at www.wgea.gov.au/targets