Pay Equity Australia

Basic Summary

Australia requires gender equality reporting through the Workplace Gender Equality Act 2012 for non-public sector employers with 100+ employees. The Workplace Gender Equality Agency (WGEA) collects comprehensive data on gender pay gaps, workforce composition, and equal remuneration policies.

Key Legislation

Workplace Gender Equality Act 2012

Requires relevant employers to:

• Report annually to WGEA
• Develop and implement workplace gender equality strategies
• Comply with minimum standards set by WGEA

Fair Work Act 2009

Provides the framework for:

• Equal remuneration for work of equal or comparable value
• National Employment Standards including parental leave
• Modern Awards setting minimum pay rates

Sex Discrimination Act 1984

Prohibits discrimination on the basis of sex, marital status, pregnancy, and family responsibilities in employment, including pay.

Employer Obligations

Reporting Requirements

Threshold: 100+ employees in Australia

Annual reporting deadline: By May 31 each year

Data required:

1. Workforce composition: By gender, employment status, occupation, management levels
2. Gender pay gaps: Base salary, total remuneration, by quartiles
3. Remuneration: Salary ranges, gender pay gap by management category
4. Employment terms: Flexible work, parental leave uptake
5. Consultation: Engagement with employees on gender equality

Gender Equality Indicators

Reports must address six indicators:

1. Gender composition of workforce
2. Gender composition of governing bodies
3. Equal remuneration between men and women
4. Flexible working arrangements
5. Consultation with employees on gender equality
6. Sex-based harassment and discrimination prevention

WGEA Compliance

Employer Census

Comprehensive annual data collection covering:

• Manager categories: CEO, key management personnel, senior managers, other managers
• Occupation categories: Based on ANZSCO (Australian and New Zealand Standard Classification of Occupations)
• Pay quartiles: Distribution of men and women across four pay bands
• Remuneration gaps: Median and mean gaps by category

Public Reporting

WGEA publishes:

• Organization-level data (searchable database)
• Industry benchmarks and averages
• National gender pay gap statistics (currently ~21.7% median, ~19.0% mean)

Employers failing to report lose eligibility for Commonwealth contracts.

Equal Remuneration Principles

Under the Fair Work Act, equal remuneration orders can be made where:

• Work is of equal or comparable value
• Men and women performing work of equal/comparable value receive different remuneration
• Difference is based on gender

Equal or comparable value assessed by:

• Skill
• Effort
• Responsibility
• Conditions under which work is performed

Key Developments

2023 Reforms

• Enhanced transparency requirements
• Strengthened WGEA enforcement powers
• Public disclosure of employer gender pay gaps
• Requirement for employers to publish gender pay gap data (250+ employees from 2024)

Public Disclosure (2024+)

Employers with 250+ employees must publicly disclose:

• Median gender pay gap
• Mean gender pay gap
• Published on employer's website and WGEA portal

Penalties and Enforcement

Non-Compliance Consequences

• Loss of tender eligibility: Cannot bid on Commonwealth contracts
• Public naming: Listed as non-compliant on WGEA website
• Civil penalties: Up to significant fines for repeated non-compliance

WGEA Powers

• Issue compliance notices
• Conduct audits and investigations
• Require provision of information
• Recommend legal action

Best Practices

Conducting Pay Gap Analysis

1. Categorize roles using ANZSCO and management levels
2. Calculate gaps using median and mean for each category
3. Analyze drivers: Representation, pay progression, part-time/casual mix
4. Develop action plan: Recruitment, promotion, flexible work, parental leave support

Gender Equality Strategy

Leading employers:

• Set measurable targets for women in leadership
• Implement pay equity audits and remediation
• Offer paid parental leave beyond statutory minimum
• Provide career development programs for women
• Address occupational segregation

Resources

• WGEA: https://www.wgea.gov.au
• WGEA Data Explorer: https://data.wgea.gov.au
• Fair Work Ombudsman: https://www.fairwork.gov.au
• Australian Human Rights Commission: https://humanrights.gov.au
• Workplace Gender Equality Act 2012: https://www.legislation.gov.au/Details/C2012A00091

Compliance Calendar

Date	Action
April 1	Reporting period begins (data snapshot)
May 31	Annual report submission deadline
July	WGEA compliance status published
Ongoing	Public disclosure for 250+ employers

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Disclaimer: This guide is for informational purposes only and does not constitute legal advice.