The stakes are rising and the clock is ticking for Australian companies with 500 or more employees. From 1st April, 2026, the Australian government has mandated that these large employers will need to select and actively work towards specific gender equality targets — from a menu published by the Workplace Gender Equality Agency (WGEA).
But what happens if you don’t set or meet them? This is a common question our team at WORK180 is getting right now, so let’s break down the consequences for non-compliance in Australia.
The big picture: Why targets matter
These target requirements have been set by the Australian government, through the Workplace Gender Equality Agency (WGEA), in order to drive real change within organisations rather than just reporting on existing data.
This shift was largely prompted by WGEA’s findings, supported by research like Dr. Leonora Risse’s ‘Target Setting for Gender Equality: A Review of the Literature,’ that many organisations, despite identifying significant gender pay gaps and other inequalities through their reporting, were failing to take meaningful action to close them. This means a more equitable future for everyone, with improved transparency and accountability, and ultimately, stronger, more competitive businesses.
Who needs to pay attention?
While all companies with 100+ employees must report their gender equity data to WGEA, the mandatory target requirements primarily apply to “Designated Relevant Employers” (DREs) in Australia. This generally means private sector employers and those engaging with government tenders with 500 or more employees.
The consequences of not meeting targets
Not setting or meeting your chosen gender equality targets without a “reasonable excuse” can lead to significant repercussions. These primarily fall into two categories:
1. Public naming (and potential shaming)
This is arguably the most impactful consequence. WGEA has the power to publicly name non-compliant employers in a report to the Minister (which is then tabled in Parliament) and on their public website.
Will people look or even care? Undoubtedly. According to our indepth survey of over 1000 women, 67% consider a diverse workforce an important factor when evaluating companies and job offers, and 56% actively look at whether a potential employer publicly shares its progress on diversity. This rising demand for upfront gender equity data is also evident in the increasing use of our own transparent career platform for women, with 1.5 million women users just last year.
Beyond putting candidates off (and even pushing current employees away), non-compliance around gender equality can also lead to loss of customer and investor confidence: Consumers are more socially conscious than ever, and investors are increasingly factoring ESG (Environmental, Social, and Governance) performance into their decisions. For example, Australian equity manager Melior actively seeks out companies with strong gender equity practices, believing they deliver better long-term financial returns – clearly indicating that positive gender equality performance is a valuable asset.
2. Ineligibility for government contracts and grants
If your company doesn’t receive a Certificate of Compliance from WGEA (which is withheld for non-compliance), the financial implications can be significant. This non-compliance can lead to ineligibility to;
- to tender for valuable Commonwealth government contracts;
- receiving essential Commonwealth grants;
- or accessing other forms of financial assistance, as stipulated by government procurement and grant policies.
For businesses heavily reliant on government funding or partnerships, this can represent a substantial blow to their bottom line and future growth.
Important note: While WGEA reporting applies to individual Australian Business Numbers (ABNs) that meet the employee threshold, an organisation’s parent company or corporate group is not ‘off the hook’ and can be publicly named if your organisation is non compliant.. This means the actions (or inactions) of one part of the business can have far-reaching implications for the whole corporate structure.
What if you have a “reasonable excuse”?
WGEA does allow for employers to provide a “reasonable excuse” for not meeting their targets — but this would have to be something extreme and unusual.
If accepted, this might prevent public naming, though the employer would still be considered non-compliant. However, it’s important to note that reasons like “being too busy” or “changes in personnel” are generally not considered reasonable excuses. WGEA aims for genuine commitment and effort towards achieving targets.
Get ready to set and meet the right targets for your team
Navigating the new WGEA target requirements can feel complex, but you don’t have to do it alone. Join us for our upcoming live session Navigating the WGEA gender equality targets: What you need to know & do now, where our experts will walk you through:
- Why and how to set the right targets for your team
- How to go beyond compliance to make targets work for you
- Actionable next steps over the next 12 months
- Plus, a “Question and Answer” session with our experts
💲Free | 🗓️ Wednesday 30 July 2025 | 🕛 12:00 PM – 1:00 PM AEST |📍 Zoom
If you’d prefer to find out exactly how WORK180 successfully supports companies in setting and meeting the gender equity targets — and specifically how we can help your company — please feel free to book a call with our team.
Our hands-on experience supporting employers in setting and meeting targets is seeing them drive gender diversity 12x faster than their industry peers!
