Big business and government boards will be pushed to improve gender equality under new measures announced by the Albanese government.
The minister for women, Katy Gallagher, announced on Thursday that businesses with 500 employees or more will be required to meet new gender equality targets if they want to win government contracts.
Gallagher revealed the board target policy at the National Press Club while releasing the first gender equality strategy, including a commitment to pay 12% superannuation on publicly funded paid parental leave from July 2025.
“Today I am also pleased to say that the government will use its purchasing power to better support gender equality outcomes,” she said.
“We’ll use the workplace gender equality reporting framework to make it a rule that, in order to win government work, businesses with 500 or more employees must commit to targets to improve gender equality in their workplaces.
“These targets will focus on the gender makeup of their boards and the workforce; equal pay; flexible working arrangements; workplace consultation on gender equality; and efforts to prevent and address sexual harassment.”
Gallagher said the measure would ensure that “women are getting a fairer slice” of the $70bn spent by the government procuring goods and services.
According to the strategy, big businesses will have to “commit to and achieve workplace targets against at least three” gender equality indicators.
These are: the gender composition of governing bodies and of the workforce, equal remuneration, flexibility and care friendly work arrangements, workplace consultation on gender equality, and efforts to prevent and address sexual harassment.
Gallagher did not specify what the targets will be – which suggests they may not require women to be half of all board members – but said the Workplace Gender Equality Agency is consulting now to draw them up.
Asked to confirm that these targets will be mandatory, Gallagher replied: “We are serious about it … The commitment there is real. We will be doing this.”
Gallagher also said the government “will introduce stronger targets for women on government boards and advisory bodies”.
In a statement Gallagher said “women’s representation on Australian Government boards is at a record high of 51.6% but that representation is uneven”.
Targets will now apply “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 establish a voluntary registration system for its suppliers to identify women-owned and led businesses.
It also promised to conduct a regular survey to hear directly from women about their concerns and priorities for gender equality.
Gallagher said the gender equality will not be left “just to the minister for women” but would be done “right across the government”.
“Joined up, complementary reforms that make it clear that gender equality is an Albanese government priority.”
The announcement of 12% super on PPL has been welcomed by the Business Council of Australia, super funds, Women in Super, the Australian Services Union and the Greens, which claimed credit for pushing the government to adopt the measure.
The Greens spokesperson on women, senator Larissa Waters, said: “We welcome this announcement, but why make women wait until 2025, when Labor has a paid parental leave bill before the Senate right now?”
Gallagher told the Press Club that the 2025 start date reflected that “we will need legislation to pass … and we need to get the systems in place about how it is administered”.
