Targets: Frequently Asked Questions

Why has the law been changed?

Target setting was a recommendation of the review of the Workplace Gender Equality Act (2012) in 2021.

Through the setting of targets, large employers will be required to make demonstrable progress towards gender equality.

WGEA data indicates that even when employers are aware that they have a significant gender pay gap, many do not take action to close the gap.

Targets are a mechanism to set an expectation for all large employers that they must consider gender equality a business priority and take action to make sure their employees are having equitable experiences in the workplace.

They will be accountable to their employees, their shareholders and the wider public.

Who is impacted?

This new law will affect around 2,000 of the 7,800 private and Commonwealth public sector employers that report to WGEA each year.

Only employers with 500 or more employees will be required to select and achieve or make progress on targets. Employers with less than 500 employees are encouraged to continue to set and monitor their own voluntary targets. 

I’m a large employer with 500 or more employees, what do I need to do?

Targets must be selected in reporting in April/May 2026. WGEA will provide comprehensive resources and support to help you determine how to choose the best targets for your organisation and work towards achieving your goal.

The menu will be set via a legislative instrument in coming weeks, and will be circulated after that.

Sign up to our newsletter, visit our website www.wgea.gov.au or follow us on LinkedIn to receive updates on the changes.

Employers will have the option to select their own 3 targets, from a menu of numeric and action-oriented targets.

Employers will be required to work towards at least one numeric target at any time. WGEA will provide guidance to employers on setting realistic numeric targets.

What can I do to make sure I am ready to select my targets in 2026 ?

Before you select your targets, you should undertake a comprehensive gender pay gap analysis.

The best gender equal outcomes come when action is focused on the unique drivers of the specific gender imbalance in each workplace. A gender pay gap analysis will identify the most effective gender equality actions for each workplace, and the targets should crystalise and track progress towards their achievement.

What if I have not yet undertaken a gender pay gap analysis?

WGEA runs free classes on gender pay gap analysis every month. We also have a comprehensive set of resources and tools to help employers consider the full suite of evidence-informed action plans before they select their targets in 2026.

Will there be masterclasses and other resources specifically for setting targets?

Yes. WGEA will expand our suite of tools and learning events to include masterclasses and employer drop in sessions to help employers. These will all follow from the data and insights provided from your GPG analysis.

Will employers be required to submit additional data to WGEA?

Employers are required to tell WGEA what targets have been selected but they will not be required to submit any additional data to WGEA for the purpose of target setting. 

All the targets are related to the data that employers are already reporting to WGEA and have been designed to limit any additional reporting burden for employers.

WGEA can monitor target progress and achievement using data that is already being reported to the Agency.

Will employers be able to set their own timeframes?

No. All targets have the same 3-year schedule. Employers have 3 years to achieve or make progress against their chosen goals.

WGEA encourages employers to break the targets into milestones over that period, and progress will be reported annually, but there is no requirement for interim milestones before the 3-year deadline.

When will the first target-setting cycle take place?

Employers will select their targets in their annual reporting to WGEA for the 2025-26 reporting period – in April-May 2026.

What support is available to employers?

WGEA is developing a suite of free resources to help support employers through the target setting process. This will include guidance on best practice target setting, including broad advice on implementation. WGEA runs masterclasses and an advisory service that employers can sign up for and receive tailored advice and support. 

What about small to medium employers?

There’s no plans to expand the reform to cover smaller employers with 100 – 499 employees.

However, these organisations can continue to select and monitor their own voluntary targets if they wish to do so.

Many employers are already setting targets. 45% of the organisations which report to WGEA already set targets, and 1 in 3 have selected at least 3 of the targets in the menu.

Will public sector employers be required to set targets?

Yes. All Commonwealth public sector employers with 500 or more employees will be required to select targets.

What about employers with overseas parent companies?

All entities operating within Australia are subject to local laws. 

The subsidiaries of global organisations which directly employ 500 or more people in Australia and which report to WGEA will be required to select and make progress against targets.

Are targets the same as quotas?

No. Targets are not quotas. Targets are specific, timebound and measurable objectives and set a benchmark to work towards. Quotas are mandatory, set externally and attract penalties if not met.

This reform requires employers to achieve or make some progress towards their targets within 3 years. 

Will the targets be published?

The chosen targets will be published on WGEA’s Data Explorer – wgea.gov.au/Data-Explorer – alongside the employer’s data that is already published there. 

They will also be detailed in the employer’s Executive Summary, which is required to be provided by the CEO to the governing body.

What happens if an employer does not achieve their targets in time?

If an employer does not achieve a target, they must demonstrate that they have made some progress in order to avoid non-compliance.

Are there some easy targets?

No. All targets progress gender equality, depending on the starting point for employers. Employers are encouraged to select meaningful targets, and must work towards improving on them for 3 years.

Employers are accountable to their staff and shareholders, and the wider public.

Does this disadvantage employers who have already been acting to improve gender equality – as they will have less targets to choose from?

It is true that employers that have already made progress on gender equality will have fewer action targets to choose from – as they’ve already implemented comprehensive policies. However, they will be in a solid position to make progress against numeric targets – as many of the actions they’ve already taken will help drive them towards the numeric goals.

How can you be sure the targets won’t adversely affect job security or career progression for any group?

The targets menu is comprehensive and not specific to men or women. Instead, the targets are focused on making progress for under-represented genders or narrowing pay gaps, and for the action targets, designed to benefit the entire workforce.