New Aus Government Report Reveals Truth Behind Gender Pay Gap

For the first time ever, the Australian Government’s new Workplace Gender Equality Agency (WGEA) has released a comprehensive, transparent collection of data outlining the differences in pay between male and female workers at almost 5,000 Australian private sector employers, with all data gathered directly from a decade of annual employer censuses. It’s a pivotal moment for gender equality in Australia, and the hope is that this degree of transparency will lead to significant change across every sector. Let’s take a look at what the report says, and what it means for you.

Is There A Gender Pay Gap?

Short answer: yes. The WGEA found some quite stark data that confirms what women around the world have been saying for years: the gender pay gap is real. Women in total across Australia are earning just 78c for every $1 a man earns (or a 21.7% difference), causing an individual loss of up to $26,393 per year – this includes both base pay and benefits like overtime, bonuses, and other additional payments, but excludes outliers like CEO remuneration. Approximately 62% of employers have a gender pay gap over 5% and in favour of men, with the median gap hitting 19%. Only 8% of employers were found to have a gap in favour of women. The remaining 30% of businesses then fall within the acceptable range of equality, with a gap of just -5% to +5%. This 30% is encouraging to see, but also means that Australia has a long way to go to achieve true workplace equality.

What Does This Mean For Women Workers?

The WGEA’s report confirms that, despite the laws against it, women have been discriminated against in the workplace for decades now – but with positive action now being taken, that discrimination will hopefully not stick around much longer. In the meantime though, women will need to be more critical of their positions and compensations when applying for jobs or negotiating promotions. Sources like Seek and Glassdoor are good first stops when researching a prospective employer, as is the WGEA report itself, to check for discriminatory practices of all kinds.

What Are The Best & Worst Industries For Women?

Some industries are much worse than others when it comes to gender pay gaps, and there are a number of reasons for this. Some industries, like construction, mining, and heavy industries, are traditionally male-dominated or were once officially segregated and have yet to change their image. Other industries, like fashion, retail, hotel groups, and travel, have a high proportion of women in non-management positions who struggle to break into those upper levels, bringing their averages down. Banking, insurance, tech, financial services, and the majority of ASX-listed companies reportedly become a “boys club” at executive levels, deterring women from persisting with a career in these companies and seeking opportunities elsewhere.

But it’s not all doom and gloom. International beverage company Lion, who own or partially own XXXX, Hahn, Four Pillars, and a number of other popular alcohol brands, have dropped their gender pay gap to just 1.4% after a self-audit in 2016. Many other businesses in the industries listed above are now following Lion’s lead and implementing diversity programs, encouragement of female leadership, and annual pay reviews as just some of the steps towards closing the gap.

The gender pay gap has long been a serious lapse in ethics in the corporate landscape of Australia. But with the Albanese Government coming good on their election promise to close it, and the tireless efforts of the WGEA, there looks to be a brighter future ahead for women in the workforce. In particular, Senator the Hon. Katy Gallagher, Minister for Women, has driven hard for these reforms, saying “On current projections it will take another 26 years to close the gender pay gap. Women have waited long enough for the pay gap to close – this government will not let them wait another quarter of a century.” 

Here at The Act 2 Project, our primary focus is on helping women reach the career heights that they deserve, no matter their situation. With the vital work of so many amazing women being glossed over every day, there’s never been a better time for the WGEA report to be released and shock the country into accelerating positive change. So if you’re a woman looking for fair and equitable compensation for your fantastic skills, reach out. We’d love to help you find the perfect position for you – no matter your industry.