In March 2023, the Australian parliament passed the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023, with the aim to accelerate change for workplace gender equality.

The key reform to come out of this new legislation is from 27 February 2024, gender pay gap information gathered from Australian companies with more than 100 employees will be made publicly available.

In the past, remuneration data was reported by the Workplace Gender Equality Agency (WGEA) at an industry level. From 27 February 2024, the details of gender-based pay gaps in individual businesses across Australia will be published by WGEA.

Additional reforms based on this legislation will come into effect from 1 April 2024, including:

• Mandatory reporting of a broader range of employment data, including employee age, workplace location and specific remuneration information of the CEO, head of business and casual manager positions.
• The expansion of mandatory reporting requirements on prevention and response to sexual harassment, harassment on the grounds of sex or discrimination in the workplace
• Larger employers (with more than 500 staff) must have a policy or strategy for each of the six gender equality indicators

So, what does that mean for employers?

These changes will result in more transparency when it comes to gender pay gaps. As an employer, you will be able to compare your results with others in your industry, or companies of similar sizes.

If you don’t already have a gender equality policy in place, and processes to support it, then now is the time to act. A gender equality policy helps to ensure that all employees, regardless of their gender, have equal access to resources, opportunities, and benefits.

When publishing company-specific gender pay gap data, WGEA will also allow employers to provide a statement to accompany the results of their data. This would provide your company with the chance to outline your commitment to gender pay equality and explain the steps being taken to improve the pay gap, such as the implementation of a gender equality policy.

Impact on employees

This expanded reporting also means that your employees – and prospective employees – will also have access to this data. If a noticeable pay gap exists, this could lead to more turnover if female employees choose to move to employers who offer pay equality. Recruitment could also be affected if potential candidates are concerned there may be a potential gender equality issue.

This underscores the importance of having a gender quality policy, along with a range of initiatives and processes to effectively address and promote equality in your workplace.

Need some assistance?

The Common Goal Consulting team has extensive experience in developing and implementing workplace policies that address key issues, including gender equality and pay equity.

If you need some help developing or reviewing a gender equality policy, or implementing policy initiatives across your business, please get in touch. You can email Director Nikki Jenkinson at projects@commongoalconsulting.com.au or call 0472 545 584.