Failure to Meet Gender Targets Could Cost Businesses Government Contracts
In a move that aims to address gender inequality in the workplace, Australian businesses will need to prioritize gender equality if they want to secure government contracts. Minister Katy Gallagher, the federal Women and Finance Minister, announced these measures during her speech to the National Press Club of Australia on March 7.
The gender pay gap is a key indicator used to measure gender equality, calculated by comparing the average total remuneration of male and female employees in an organization. According to Gallagher, the average gender pay gap in Australia currently stands at 12 percent in favor of men. In organizations with over 100 employees, this gap can widen to 21.7 percent. These statistics highlight the need for action to bridge this divide.
To address this issue, the government plans to leverage the Workplace Gender Equality reporting framework. This will make gender equality a requirement for businesses with 500 or more employees tendering for government contracts. Companies will be expected to make improvements in various areas, including the gender makeup of their boards and workforce, equal pay, flexible working arrangements for women, workplace consultation on gender equality, and efforts to prevent and address sexual harassment.
Furthermore, businesses will not only be required to set targets but also demonstrate progress towards achieving them. Minister Gallagher believes that shedding light on workplace practices will encourage employers to reconsider their hiring, promotion, and remuneration policies. The government’s goal is to drive change and ensure gender equality becomes a fundamental aspect of Australian workplaces.
This initiative follows the government’s release of gender pay gap data for 5,000 public and private companies in late February. The transparency created by this disclosure aims to hold the government accountable for its efforts in addressing gender inequality.
In addition to addressing the gender pay gap, Minister Gallagher also discussed the issue of parental leave and superannuation payments. While the government plans to provide additional payments to eligible parents starting from July 1, 2025, employers are not currently required to contribute to these payments. The government aims to lead by example and hopes that this initiative will encourage employers to follow suit.
By taking the lead in providing additional support for parents, the government hopes to set a standard for workplace entitlements. Minister Gallagher believes that as employees see the government’s commitment to this cause, they will begin to expect similar benefits from their employers.
In conclusion, the Australian government’s push for gender equality is set to have a significant impact on businesses. Failure to meet gender targets could result in them missing out on valuable government contracts. This move is part of a broader effort to bridge the gender pay gap and promote greater equality in the workplace. By shining a light on workplace practices and setting standards, the government hopes to drive meaningful change and create a fairer and more inclusive society.
