Recommendation 1 – Make it easier for employers to report to WGEA and improve collection and sharing of gender data

1.1 Improve the quality of data reported to WGEA, and reduce the regulatory burden for employers, by tasking a new Gender Data Steering Group (Recommendation 1.2) to drive and oversee research and stakeholder consultation (including with both human resources and payroll Digital Service Providers) to identify how to:

1. enable WGEA to use data employers have already provided to government (such as Single Touch Payroll data and other data) and for that data to be used by WGEA to satisfy part of the WGEA reporting requirements where possible (this is likely to require legislative amendments, depending on the nature of the data already provided to government), and
2. invest in a way to assist employers to extract other data from their own employer systems using a digital solution where possible. A digital solution would substantially reduce employer reporting burden and improve the quality of data reported to WGEA. Currently, depending on their systems, employers have to extract data from multiple payroll and HR systems and do manual work joining up, interpreting and checking data from disparate systems to report to WGEA.

1.2 Improve the sharing of gender data among WGEA, other departments and agencies by establishing a Gender Data Steering Group under the Deputy Secretary Data Group. Enhancing senior strategic oversight of gender data will improve the impact of the Australian Government’s collection and use of gender data. The new Steering Group’s role includes overseeing implementation of Recommendation 1.1.

Recommendation 2 – Publish organisation gender pay gaps to accelerate action to close them

2.1 Amend the Workplace Gender Equality Act 2012 to allow WGEA to publish gender pay gap information at an employer level as an overall figure and by quartile to encourage change within organisations. Individual employee pay information is not to be published. Conduct further stakeholder consultation to identify the best way to implement this recommendation and conduct a regulatory impact assessment ahead of implementation.

Recommendation 3 – Bridge the ‘action gap’ with new gender equality standards

3.1 Bridge the ‘action gap’ to strengthen the existing minimum standards by amending the Workplace Gender Equality (Minimum Standards) Instrument 2014 to:

1. add a new minimum standard to require relevant employers with 500 or more employees to commit to, achieve and report to WGEA on measurable genuine targets to improve gender equality in their workplace against three of the six gender equality indicators
2. strengthen the existing minimum standards to require relevant employers with 500 or more employees to have policies or strategies that cover all six gender equality indicators (not just one policy or strategy for one gender equality indicator in the current minimum standards), and
3. rename the minimum standards to be ‘gender equality standards.’

Conduct further stakeholder consultation to identify the best way to implement this recommendation and conduct a regulatory impact assessment ahead of implementation.

3.2 Strengthen accountability of relevant employers to take action to improve gender equality in workplaces by amending the Workplace Gender Equality (Matters in relation to Gender Equality Indicators) Instrument 2013 (No. 1) to:

1. require relevant employers to report the date employers share with their employees, shareholders, and/or members the gender equality reports that the employers provided to WGEA, and
2. require relevant employers to provide the Executive Summary report and Industry Benchmark report from WGEA to employers to their Board/Governing Body.

Recommendation 4 – Reduce the regulatory burden on employers

Recommendation 1.1 is a major recommendation to decrease the regulatory burden on employers. This recommendation proposes changes to current WGEA reporting requirements that could be done in the short-term ahead of identifying a digital and legislative solution as proposed in Recommendation 1.1.

4.1 Amend the Workplace Gender Equality (Matters in relation to Gender Equality Indicators) Instrument 2013 (No. 1) to:

1. Remove the ‘reporting levels to the CEO’ question. Currently relevant employers must report on managerial distance from the CEO or equivalent. The method of describing employee positions and distance from the CEO does not align with many existing workplace reporting structures. Many relevant employers spend considerable time interpreting and applying this requirement and identified it as a major 'pain point.'
2. Replace ‘annualised full-time equivalent figures’. Enable relevant employers to report on actual earnings of part-time and casual employees as well as the number of hours employees are engaged. This is instead of relevant employers providing annualised full-time equivalent figures for part-time and casual employees as currently required.
3. Replace the parental leave questions that currently ask employers to report on the ‘proportion’ of their workforce as employers find this burdensome. Instead, enable relevant employers to report by gender, employment status and manager/non-manager category:
   1. The number of employees with access to employer-funded paid parental leave for primary carers and for secondary carers and the eligibility period for access,
   2. The number of employees who took a period of parental leave who ceased employment during, or at the end of that period.

Recommendation 5 – Support Respect@Work implementation to prevent and address workplace sex-based harassment and discrimination

5.1 To align the Workplace Gender Equality Act and its associated legislative instrument, include ‘sex-based harassment and discrimination’ as a gender equality indicator in the Workplace Gender Equality Act. It is already Gender Equality Indicator 6 in the Workplace Gender Equality (Matters in relation to Gender Equality Indicators) Instrument 2013 (No. 1).

Employers currently report to WGEA on sex-based harassment and discrimination. This recommendation for legislative change will bring the Act and Instrument in line and does not change reporting obligations. Separate, complementary work is underway by the Respect@Work Council, the Attorney-General’s Department and WGEA to implement Roadmap for Respect, the Government’s response to Respect@Work. This includes considering indicators for sexual harassment (recommendation 46 Respect@Work) and how WGEA reporting could be used in relation to those indicators (recommendation 42 Respect@Work).

Recommendation 6 – Research the best way to collect diversity data

6.1 Undertake qualitative research with relevant stakeholders, led by WGEA, on the best way to collect more diversity data in addition to gender data to enable voluntary reporting, including on Aboriginal and Torres Strait Islander background, cultural and linguistic diversity, and disability.

There was strong support in the consultation process for collecting additional diversity data. But sensitive issues were also raised about employees being reticent to provide this information to employers because of concerns about how this information may be used and the negative impact it may have on their employment. This research will consider how to address these issues.

Recommendation 7 – refine the gender equality indicators

7.1 Amend the Workplace Gender Equality (Matters in relation to Gender Equality Indicators) Instrument 2013 (No. 1) to include mandatory reporting of:

1. employee age (year of birth), noting many employers report voluntarily
2. employee’s primary workplace location, noting many employers report voluntarily
3. whether superannuation is paid by an employer when an employee is on paid, unpaid employer-funded and/or government-funded parental leave, noting many employers report voluntarily, and
4. remuneration data for Chief Executive Officers (CEOs) or the equivalent (individual remuneration would not be public but would be aggregated to calculate gender pay gaps and used for other remuneration analysis and insights).

7.2 Amend the Workplace Gender Equality Act and associated legislative instruments, in line with the ABS 2020 Standard for Sex, Gender, Variations of Sex Characteristics and Sexual Orientation Variables, to enable WGEA to collect data on non-binary people.

7.3 To identify the best approach to improve other aspects of gender equality indicator reporting and reduce the regulatory burden on employers, the Department of Prime Minister and Cabinet is to do further work – including conducting further stakeholder consultation and regulatory impact assessment for any proposals – to assess the need for legislative amendments to:

1. require employers to report to WGEA on occupations and jobs at Australian and New Zealand Standard Classification of Occupations (ANZSCO) level 4 for non-managers
2. include partnerships and partners in the WGEA dataset more comprehensively than they are currently (partners in partnership structures are considered owners not employees, this skews the reporting of gender pay gap data to WGEA), and
3. make it mandatory for relevant employers to report on data as it relates to individual entities within corporate structures, not as it relates to the group hierarchy.

Recommendation 8 – strengthen compliance and enforcement

8.1 Amend the Workplace Gender Equality Act so all relevant employers must comply with WGEA’s reporting obligations for Commonwealth grants eligibility and Commonwealth procurement participation. To support implementation of this recommendation, the Office for Women in the Department of Prime Minister and Cabinet, together with the Department of Finance and other relevant departments, will review the Workplace Gender Equality Procurement Principles.

Recommendation 9 – set WGEA up for future success to support employers to drive gender equality in Australian workplaces

9.1 WGEA is a critical enabler of the WGEA Review recommendations. The recommendations have resourcing implications for WGEA that will require consideration by the Australian Government. To maximise effectiveness, WGEA will need additional investment to implement the WGEA Review recommendations to drive action on gender equality in Australian workplaces.

9.2 To avoid confusion with company director roles, amend the Workplace Gender Equality Act to change the title of the ‘Director of WGEA’ to Chief Executive Officer (CEO).

9.3 WGEA to review its Employer of Choice Gender Equality citation to improve its effectiveness as a citation and incentive for more employers to progress gender equality in their workplaces.

9.4 WGEA to continue to improve the way it supports employers progress gender equality in their workplaces including by:

1. reviewing the reports it provides to employers
2. expanding its educational resources
3. developing tailored ‘off the shelf’ policies for small and medium enterprises
4. publicising the positive progress of employers
5. improving the functionality of WGEA’s digital reporting platform
6. strengthening its capacity to assist employers to bridge their action gaps, and
7. leading employers through the change management required by any reforms flowing from recommendations in this report.

The measurement of success for this work by WGEA is that employers use the full range of tools and supports and find them helpful to improve gender equality in their workplaces.

Recommendation 10 – review the Workplace Gender Equality Act in five years from the date any legislative changes commence

10.1 Formally review the effectiveness of action flowing from this WGEA Review five years from the commencement of any legislative reform. This timeframe will give employers an opportunity to adapt to the changes and accelerate progress on gender equality in their workplaces.