Kate Thwaites (Jagajaga, Australian Labor Party, Assistant Minister for Women) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Since the Albanese government came to office, we have been working every day to drive progress on gender equality.

The bill we're introducing today is the latest in a series of reforms our government has delivered for Australian women, reforms that put the needs of women at the forefront of our majority-female government's work, each time taking us a step further towards creating a more equal country.

Our government is proud that we continue a long legacy of Labor governments in this work.

From the Whitlam government funding women's refuges, health centres and community childcare, to the Gillard government introducing our country's first paid parental leave scheme, Labor governments exist to make Australia a better and fairer place.

Advancing gender equality and supporting Australian women is at the centre of that project.

In March, the government released Working for women: A strategy for gender equality to set a path to achieve our vision for gender equality over the next ten years.

And we are making progress towards that vision.

This year, for the first time, the individual gender pay gaps of private sector businesses with more than 100 employees were required to be reported publicly, bringing focus to how businesses are working to advance equality within their own workplaces.

More than 11 million workers now have access to 10 days of paid family and domestic violence leave.

We have improved paid parental leave (PPL) to recognise the reality of modern Australian families, expanding it to 26 weeks by 2026, providing greater flexibility for parents in how and when they take leave, and introducing superannuation on government PPL.

We have made child care cheaper, helping more women to juggle family and work and providing young children with the best start in life.

Gender equality is now a central objective of the Fair Work Act, strengthening the ability to consider gender when it makes wage determinations.

We have funded wage increases in aged care and early education—two sectors long dominated by women workers and which have been undervalued and underpaid for too long.

We are funding prac placements in areas traditionally dominated by women, such as teaching, social work, midwifery and nursing, and supporting young women to start their careers with more financial security by reducing their HELP debts and providing fee-free TAFE places.

Our government recognises that improving gender equality is good for Australian women and good for Australia as a whole—helping to boost women's participation in the workforce and improving productivity for companies and the economy.

As I said, we are making progress. But there is more to be done.

The data collected by the Workplace Gender Equality Agency, WGEA, has allowed us to track progress and increase transparency on workplace gender equality, including the gender pay gap.

WGEA reports that the total remuneration gender pay gap is 21.1 per cent for 2023-24, which includes base salary, overtime, bonuses and additional payments. As of May this year, average full-time earnings of women in Australia was lower than the equivalent for men by $231.50 per week. By the time they reach retirement age, women have on average 25 per cent less superannuation than men.

Women also continue to be underrepresented in leadership positions, representing only 22 per cent of CEOs. Women hold 20 per cent of chair positions and 32 per cent of board member positions. One in four organisations have no women board members.

This is despite research finding a relationship between increasing the proportion of women in the most senior levels and higher company performance, productivity and profitability. The gender pay gap represents an estimated cost of $51.8 billion a year to the Australian economy.

Our government wants to work with employers to close that gap and make sure that workplaces are fair, respectful, flexible and safe.

We're doing this through increasing accountability and raising the bar for large employers to take action.

Building on our 2023 reforms to publish employer gender pay gaps, our government is now introducing this bill, the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill.

The bill will introduce a world-first targets scheme to accelerate action on gender equality by large Australian employers.

It will require organisations with 500 or more employees in Australia to commit to achieve—or, at a minimum, improve on—measurable targets to progress gender equality in their workplaces.

Target setting and action planning are both well-known levers for improving gender equality outcomes in the workplace. Research by Dr Leonora Risse, an economist and one of Australia's leading gender equality researchers, found that target setting for gender equality promotes accountability, transparency and organisational confidence. The research indicates that taking this kind of data-driven approach is in itself a mechanism for change.

Regardless of which targets employers select, the act of requiring them to take targeted action will drive a shift in behaviour by embedding practices that are likely to create positive and lasting cultural change in workplaces.

This bill requires large employers to select targets from a menu of targets and then make progress towards these targets. The full list of targets and rules for selection will be outlined in an associated instrument to the act. The intent is that employers will select at least three targets from the menu of targets, which is aligned to the WGEA gender equality indicators.

Employers will then have three years to improve upon or achieve the targets. This will give employers flexibility and time to take action in priority areas for their workplace. By rewarding progress, employers will also be incentivised to set more ambitious targets.

The menu of targets that employers can choose from will focus on: the gender make-up of boards and the workforce; gender pay gap; flexible working arrangements and support for parents and carers; workplace consultation on gender equality; and efforts to prevent and address sexual harassment. These areas align with WGEA's gender equality indicators, the six key areas where workplace gender inequality persists and where progress can be achieved through focused action. The menu of targets is included in the supporting materials to the bill.

The targets include both numeric targets, such as reducing the gender pay gap and improving gender composition in roles or occupations, and action based targets, such as introducing a paid parental leave program or enhancing flexible work offerings. The targets will draw on the information that employers currently provide to WGEA against the gender equality indicators.

WGEA will work with employers to set and achieve targets, helping them build their capacity to achieve change. This is already occurring through WGEA delivering education resources and providing direct support to employers to undertake analysis, develop action plans and build internal capability to improve gender equality.

It is important to note that these employers—those with 500 or more employees—are already required to have policies or strategies against each of the gender equality indicators. When they select targets they should already have relevant strategies and policies in place. Setting targets will help focus on action and accountability to achieve those strategies and policies.

In creating obligations to set and achieve targets, this bill seeks to cement Australia's status as a global leader in gender equality. Targets will lead to more ambitious commitment and progress, which then meets community expectations and is in line with the broader momentum towards gender equality in Australia.

No other country in the world requires businesses to commit to gender equality targets. Australia will be leading the way to accelerate action on gender equality in workplaces.

This bill builds on last year's amendments to the act by continuing to implement the recommendations from the review of the act in 2021.

Changes in 2023 led to the gender pay gaps for private sector employers with 100 or more employees being published for the first time. This was a clear move towards greater transparency and accountability for Australian organisations and gave them an opportunity to assess their performance against their peers. It also gave employees and the broader Australian public the chance to see how individual workplaces are performing, helping them to make more informed decisions as employees, customers and stakeholders of these businesses. This is, and will continue to be, a critical step towards closing the gender pay gap and accelerating action towards gender equality. Public sector employer pay gaps will be published for the first time from early 2025.

The inclusion of a gender equality targets scheme further supports the government's 2022 election commitment to lead a national push to close the gender pay gap by encouraging employers to close these and other gaps in workplaces.

Our government wants to be working alongside employers to effect the change we need to see and, in doing so, benefitting both employees and employers. Through this, companies will see improved staff retention, productivity, safety and enhanced reputation.

Despite the current high level of transparency in reporting to WGEA, only 68 per cent of organisations have undertaken a gender pay analysis. Of these organisations, 75 per cent took action to close the identified gap. Requiring organisations to set targets can drive real change, as employers will be accountable for improving their results.

While the bill provides the opportunity for employers to make ambitious commitments through the targets scheme, it also ensures that employers are acknowledged for the efforts they make towards progress against their targets. In addition, it ensures they are not found to be non-compliant if they set ambitious targets and make progress towards them but are not able to meet them within the three-year period.

It is the intent of the amendments to encourage employers to actively take action within their organisations to improve workplace gender equality and make progress against their baseline. In this way, the compliance provisions recognise the act of setting and making progress on the target as the primary threshold.

The targets menu has been developed by WGEA following consultation with key groups of stakeholders to make sure the menu of targets is genuine and measurable. The targets have been designed in consultation with a range of stakeholders including the business sector, the not-for-profit sector, higher education providers and the women's sector.

The government's been upfront about our policy position and the intentions behind introducing gender equality targets.

Results against the targets will be monitored through employers' annual reporting to WGEA and their boards. Information about targets selected and employer progress or achievement will also appear on WGEA's Data Explorer.

This bill raises the bar in the obligations on large employers, who may also be publicly named as non-compliant if they do not set, improve upon or meet the targets without reasonable excuse.

Large employers will be required to follow the targets scheme to obtain a certificate of compliance from WGEA. The holding of a certificate of compliance is considered as part of an employer's eligibility to contract with the Australian government through procurement processes.

In this way, the government is using its purchasing power to drive gender equality outcomes and boost women's economic equality—effectively using a policy lever worth $70 billion each year.

Since our election in 2022, our government has placed gender equality at the heart of our work.

We know that many businesses and organisations share our commitment to improving gender equality in workplaces right across the country.

I am heartened by the obvious commitment of employers in Australia, who are already engaging positively with WGEA. We can see this in the response to the publishing of employer gender pay gaps. I encourage employers to see this reform as an opportunity to go further and work with government to really shift the dial on gender equality and close the gender pay gap.

This reform will also apply to Commonwealth public sector employers with 500 or more employees.

This will hold the government as an employer to the same standard and mean the public and private sector can learn from each other and make progress together.

We look forward to working with employers across the country on the reforms in this bill.

Now is the time to accelerate the pace of change. The introduction of gender equality targets will build on the progress to date and position us to close the gender pay gap and improve the lives of Australian women.

Debate adjourned.