Australia plans to set tough gender targets for big businesses that want to win government contracts, in the latest moves to address inequality in the country’s workforce.
Companies with at least 500 workers that are seeking to win government business will be tracked on targets including gender makeup of the workplace and boards, equal pay and flexible working arrangements, Finance Minister Katy Gallagher said in a Canberra speech Thursday.
“Not only will businesses have to set targets, but they will also have to show progress towards them,” Gallagher said.
The targets will also focus on workplace consultation on gender equality, and efforts to prevent and address sexual harassment.
The tougher stance is part of the government’s new gender equality strategy, released just over a week after data revealed wide disparities in Australia’s gender pay gap among private companies. The average national differential currently stands at 21.7% when taking into account total remuneration, according to the Women’s Gender Equality Agency.
Gallagher also announced long-awaited changes to pay pension contributions for workers who take paid parental leave. From July 2025, all workers who receive such leave from the government will also get a mandatory pension entitlement for that period.
Parents who currently take leave miss out on their pension contributions, often leaving female workers significantly disadvantaged. In Australia, employers are required to pay workers 11% of their salary as a pension contribution, known locally as superannuation.
“Women’s representation on Australian government boards is at a record high of 51.6% but that representation is uneven,” Gallagher said Thursday.
“We are committed to maintaining women’s seat at the decision-making table, with targets now applying at portfolio level and to all positions on all government boards and advisory bodies, as well as to chair and co-chair positions.”
The government will also introduce a public supplier register to identify businesses that are owned or led by women and will track contracts being awarded to businesses that are run by women.
