Gender Equality Targets: What Large Employers Need to Know — and Why the NFP Sector Could Face Unique Challenges

In March 2025, the Federal Government passed the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill 2024, marking one of the most significant updates to workplace gender equality legislation in over a decade.

For large employers — including those in the Not-for-Profit and For-Purpose sectors — this legislation introduces new expectations, clear accountability, and potential consequences for non-compliance. But while the goals are widely supported, the path to achieving them may look very different depending on your organisation’s structure, resources, and industry context.

A Quick Recap: What’s Changing?

The new amendments require Designated Relevant Employers (DSEs) — organisations with 500 or more employees, including subsidiaries of foreign companies operating in Australia — to:

• Select three gender equality targets from a defined list of 19 numeric and action-based targets.
• Make meaningful progress or take defined action to meet these targets over a three-year cycle, starting from 2026.
• Demonstrate improvement, with non-compliance potentially restricting eligibility for Commonwealth procurement contracts over $80,000.

The targets align with six gender equality indicators such as leadership representation, pay equity, recruitment practices, and more.

Where NFPs and For-Purpose Organisations May Face Extra Hurdles

While these reforms apply equally across all large employers, many NFPs and For-Purpose organisations could find themselves at a disadvantage when it comes to meeting these targets — and not for lack of commitment to gender equality.

Here’s why:

1. Resource Constraints

Unlike large corporates, many NFPs operate with leaner budgets, often directed towards frontline services rather than HR systems or specialist diversity programs. Implementing structural changes or achieving numeric targets may require investment in workforce planning, training, or technology that stretches already tight resources.

2. Workforce Demographics

In some sectors — such as community services, aged care, education, and healthcare — the workforce is already heavily female-dominated. While this may seem like an advantage, it can actually present challenges:

• Efforts to increase gender diversity at senior leadership levels or in traditionally male-dominated roles (such as IT, property, or executive management) can be hindered by limited candidate pools.

• Conversely, achieving gender balance may require targeted recruitment of men into frontline or care-based roles, which can be culturally and practically complex.

3. Attracting and Retaining Talent in Regional and Remote Areas

For NFPs delivering services in regional, rural, or remote communities, attracting a diverse workforce is already a known challenge. The added expectation to meet gender equality targets — particularly around leadership representation or gender balance in recruitment — may compound existing workforce shortages.

4. Structural Complexity

Some large NFPs operate under a federated model or with complex governance structures across different services or regions. Aligning gender equality targets, data collection, and action plans across diverse business units can be far more complicated compared to a single corporate entity.

Where to Start

For NFPs and other large employers, proactive planning is key:

• Review your 2025 Gender Equality Baseline Report from WGEA carefully — this will inform which targets are most achievable and meaningful for your organisation.
• Engage with leadership teams early to secure buy-in and identify potential resourcing needs.
• Consider partnering with external experts — including sector specialists and diversity consultants — to design practical, context-sensitive strategies.
• Don’t underestimate the value of sharing knowledge with peers in the NFP space. Collective problem-solving will be crucial, especially for organisations facing similar sector-wide workforce and funding challenges.

Final Thoughts

The intent behind these reforms is clear: improving gender equality benefits organisations, employees, and the wider community. But for many in the NFP and For-Purpose space, success will require creativity, collaboration, and sustained advocacy to ensure that good intentions are supported by the resources and flexibility needed to meet these new targets.

If your organisation is navigating these changes and would benefit from tailored advice or workforce planning support, we’re here to help.

Sources:

• Workplace Gender Equality Agency (WGEA)

• Parliament of Australia