In March 2022, the Department of the Prime Minister and Cabinet (PM&C) published the report on the Australian Government’s 2021 Review of the Workplace Gender Equality Act 2012 (WGE Act). In August 2022, the Australian Government committed to implement all 10 recommendations of the Review.
Recommendation 8 of the Review seeks to strengthen compliance and enforcement of the WGE Act and WGE Procurement Principles. Acting on this recommendation, the Australian Government has undertaken a review of the Workplace Gender Equality Procurement Principles (WGE Procurement Principles).
Workplace Gender Equality Procurement Principles
According to the WGE Procurement Principles, all tenderers who have 100 or more employees must demonstrate compliance with the requirements under the WGE Act. Tender submissions must include a compliance letter from the Workplace Gender Equality Agency (WGEA), or one must be provided before entering into a contract with a procuring agency. The principles apply to government procurement contracts above $80,000, or $7.5 million for construction services.
Compliance requires relevant employers to report to Workplace Gender Equality Agency (WGEA) on their performance against the Gender Equality Indicators (GEIs) and communicate their performance to employees, shareholders and governing bodies.
If an employer who is a recipient of an Australian Government contract becomes non-compliant with the WGE Act during the term of their contract, they should notify the nominated procuring department. The employer should then contact WGEA for information on the steps required to become compliant.
Employers with 500 or more employees (or designated relevant employers) have greater compliance obligations. These employers are required to have policies or strategies in place for the six GEIs. Under the WGE Act Section 19C, these employers have two additional reporting periods to improve against the GEIs.
Relevant employers who fail to comply with the Act may not be eligible to compete for contracts under the Commonwealth Procurement Framework, and may not be eligible for grants. WGEA can also publicly name employers as non-compliant.
Review of the Workplace Gender Equality Procurement Principles
The Office for Women (OFW), in consultation with the Workplace Gender Equality Agency (WGEA) and Department of Finance, reviewed the WGE Procurement Principles (the Principles). The review explored:
- how the Australian Government applies the Principles
- ways to strengthen the Principles as a means to encourage employers to report to WGEA
- how the Australian Government's approach to procurement spending contributes to gender equality outcomes.
To inform the review, OFW conducted public and internal government consultation. Public consultation included a discussion paper and invitation for submissions on PM&C’s website.
Results and next steps
Through the review, OFW sought ways to improve the effectiveness of the Principles to minimise regulatory burden and maximise progress towards gender equality in Government procurement.
OFW found high levels of compliance with the Principles across government. The Australian Government has committed to improve transparency through annual reporting on compliance with the principles and procurement outcomes. OFW will also engage with agencies that have non-compliant contractors within their portfolios, to support strengthening compliance where possible.
Naming non-compliant employers is a key compliance strategy and important transparency mechanism of the WGE Procurement Principles. Reporting periods for 2022-23 and 2023-24 are available at Employers named as non-compliant under the Workplace Gender Equality Act.
Enforcement of the Principles was further strengthened in September 2024, when the Workplace Gender Equality Agency published its first Compliance Strategy. This Strategy articulates the obligations of relevant employers under the WGE legislation, identifies compliance priority areas and supports employers to understand how WGEA will fairly and proportionately respond where relevant employers do not meet their obligations.
The WGE Procurement Principles and User Guide were launched in 2013. OFW will revise the WGE Procurement Principles in 2025.The updated Principles will reflect legislative changes to the WGE Act, such as:
- the inclusion of public sector employers as relevant employers
- the requirement for designated relevant employers to have policies or strategies on the six Gender Equality Indicators and improve over time
- the requirement for employers to provide reports to governing bodies
- the requirement for employers to not give false or misleading information and to cooperate with WGEA.
The Principles will also be updated to provide clearer guidance to Government departments on the exceptional circumstances where agencies may need to contract with non-compliant employers.
Further background
The WGE Procurement Principles describe the procurement connected policy associated with the WGE Act. Procurement Connected Policies sit under the Commonwealth Procurement Rules, governed by the Department of Finance.
The Commonwealth Procurement Rules form part of finance law as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act) which is managed by the Department of Finance.