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Gender pay gap regulation: from transparency to accountability

Reforms to Australia’s Workplace Gender Equality Act give the public new pay gap data. Intermediaries welcome the changes, but emphasise the law needs stronger compliance measures to drive real progress.

Read time: 6 mins

Based on Bridging disclosure and action: The role of intermediaries in gender pay gap regulation, published May 2025, by Sally Curtis, Jananie William, Anna von Reibnitz, Miriam Glennie, and Andreas Pekarek.

Key takeaways

1

Gender pay gaps stubbornly persist. On average, women are paid less than men. In Australia, the pay gap currently sits between approximately 12 and 22 per cent depending on the measure used.

2

Intermediaries help make the law work. These intermediaries include investors, trade unions, advocacy groups, and researchers. They can use pay gap data to pressure employers, propose legal reforms, and mobilise public debate.

3

Reform momentum is building. From 2026, large employers will also have to set targets and demonstrate progress, but effective enforcement beyond data disclosure will determine whether this closes the gap.

Since 2012, the Workplace Gender Equality Act has required employers to report their gender pay gaps to the regulator. Until 2024, only aggregated industry figures were made public.

Recent reforms mean organisation-level data is now published, alongside new requirements on sexual harassment, discrimination, and executive workforce reporting.

ANU and University of Melbourne researchers analysed 121 public submissions to the 2021 review of the Workplace Gender Equality Act (the Review) and conducted 14 in-depth interviews with key intermediaries. Key intermediaries act as a bridge between regulation and employers. Key intermediaries in gender equality include trade unions, investors, advocacy groups, and peak bodies.

Why intermediaries matter

Workers, who are most affected by unequal pay, often lack the power, resources, or organisational leverage to use disclosure data effectively. This makes the role of intermediaries essential in translating transparency into action.

The study found that intermediaries can:

  • Use disclosure data to identify and pressure underperforming employers.
  • Propose and lobby for new legal reforms.
  • Shape public debate through advocacy, education, and campaigns.

In short, intermediaries turn numbers into accountability.

Closing the disclosure–action gap

Gender pay gap policy has focused on disclosure to shine a light on inequalities. But intermediaries interviewed for the study stressed that disclosure alone is not enough to shift the entrenched gender pay gap. They say that disclosure without consequences is insufficient.

“If we are relying on (unpublicised disclosure) for a wholesale shift … well, it would have happened by now. And it hasn’t.” – Interviewee, investor group.

The 2024 reforms in Australia have taken a first step in closing the disclosure-action gap, by making the gender pay gap data disclosed by employers to the regulator available to the public. Comparative evidence supports disclosure. In the UK, employer-level disclosure mandates led to the biggest reductions in pay gaps where organisations were most exposed to public scrutiny.

Additionally, from 2026 large employers will need to set targets in areas including gender pay gaps and leadership diversity.

Despite these reforms, however, the gender pay gap remains stubborn and accountability gaps remain.

What intermediaries want

Intermediaries welcomed the 2024 reforms with 91% of Review submissions supporting improved transparency through public disclosure of employer gender pay gaps.

But they also called for stronger levers to make disclosure meaningful:

  • Consequences for inaction: sanctions such as loss of government procurement opportunities for non-compliant employers.
  • Action plan disclosure: requiring employers to publish gender equality strategies and track progress, not just report outcomes.
  • Broader coverage and comparability: ensuring public sector, small firms, and senior executives are included, so inequities aren’t hidden.
  • Stronger enforcement: penalties for non-compliance.

Policy implications

The ANU and University of Melbourne research suggests that to close the gender pay gap, policymakers should:

  • Require disclosure of action plans and measurable progress to link transparency to accountability.
  • Attach real consequences for persistent inaction such as sanctions and penalties to strengthen compliance.
  • Support intermediaries with reliable, comparable data so they can reward employers who make progress with reducing their gender pay gap and exert pressure on underperforming employers.

Without these measures, there is a risk of mistaking disclosure for progress and leaving the burden of enforcement to intermediaries alone.

“We’ll have pockets of progress, but sometimes you need to have something that’s just a mandatory regime with some real accountability, and penalties. Otherwise, [employers] can just get away with not doing it.” (Journalist)

Conclusion
ANU-led research highlights the importance of intermediaries in bridging disclosure and action, while underlining the need for legislation with real consequences to achieve genuine workplace equity.

Based on the work of ANU experts

Dr

ANU College of Business and Economics

Dr

ANU College of Business and Economics

Dr

ANU College of Business and Economics