Australia's gender pay gap has reached a historic low of 21.7 per cent.

A 1.1 percentage point decrease has been recorded ahead of upcoming legislation to expose the gender pay disparities at businesses employing over 100 people. 

The new laws, affecting nearly 5 million workers, are anticipated to further reduce the gap.
Australia’s gender pay gap is a complex issue resulting from discrepancies in gender-dominated industries, career interruptions for women, and historical gender discrimination.

Government data indicates a $1,322 annual decrease in the pay difference between men and women.

Workplace Gender Equality Agency (WGEA) CEO Mary Wooldridge says there is still a need for bold action from employers, attributing the improvement to increased gender equality discussions, a tight labour market, and imminent legislative reforms. 

The legislative change will compel large Australian businesses to disclose their gender pay gap data, marking a shift toward radical transparency.

Wooldridge anticipates the public release of this information in late January or early February 2024. 

While private-sector employers with 100 or more employees have reported gender gap data since 2012, the new legislation mandates public disclosure, holding companies accountable for their gender pay practices.

Comparisons have been made to the UK experience, where publicising gender pay gaps prompted conversations about workplace inequality. 

The latest data reveals a 21.7 per cent national "total remuneration" gender pay gap in 2023, narrowing by $1,322 from the previous year. 

The decrease, the second-largest in a single year since 2014, includes base salary, overtime, bonuses, and additional payments. 

An alternative calculation using the Australian Bureau of Statistics survey suggests a 13 per cent "base salary" gender pay gap.

The 2023 Australia's Gender Equality Scorecard notes a shift to “mixed-gender industries”, constituting half the workforce. 

Previously, industries were segregated by gender stereotypes, but this shift contributes to narrowing the gender pay gap.

Looking ahead to 2024, the public release of company-specific figures is expected to raise concerns for businesses on the potential “naughty list”. 

Some firms, particularly those with a gender pay gap and a large workforce of lower-paid women, may face public scrutiny. 

Companies will have the opportunity to publish statements alongside the data, explaining their situation and efforts to address disparities.