1 in 5 Australian Businesses Have Closed the Gender Pay Gap, Report Finds

On average, women in Australia earn 78 cents for every dollar earned by men, when looking at overarching figures.

Commuters make their way through Martin Place Metro Station in Sydney, Australia, on Aug. 19, 2024. Lisa Maree Williams/Getty Images

Australia’s gender pay gap is shrinking at a slow pace while one-in-five Australian businesses have closed the gap, according to the latest Workplace Gender Equality Agency (WGEA) report, released on March 4.

On average, women in Australia earn only 78 cents for every dollar earned by men, which adds up to a $28,425 gap in annual pay.

This sum makes it harder for many women to achieve the same financial security as men.

The report reveals that 56 percent of employers have reduced their gender pay gap in the past year, suggesting that change is possible but slow.

While the national average gender pay gap stands at 21.8 percent, the median total remuneration gap is better at 8.9 percent—a 0.2 percent reduction from last year.

Mary Wooldridge, CEO of WGEA, acknowledged the challenge but offered a note of optimism.

“It’s a big difference, but we are seeing positive signs,” she said.

She also highlighted a notable rise in employers analysing their gender pay gaps and consulting with employees to understand the underlying causes.

“It’s promising to see the significant increase in employers working to understand what is driving their gender pay gap, beyond unequal pay,” Wooldridge said.

Disparities in Gender Pay Across Industries

Men are more likely to occupy the highest-earning roles, while women are concentrated in the lowest-earning quartile in 17 out of 19 industries.

A significant 25 percent of employers in women-dominated industries report a gender pay gap above the national midpoint of 12.1 percent.

The large number of employers in sectors like healthcare, education, and retail means many of the highest pay gaps are in industries where women are overrepresented. In these sectors, women often occupy lower-paying roles, while relatively more men occupy higher-paying positions.

For example, in healthcare, employers with a gender pay gap above 12.1 percent are typically found in pathology, dental, and medical services.

Meanwhile, sectors like aged care and childcare report smaller gaps.

Conversely, 6 percent of employers in women-dominated sectors pay women more than men. These employers are often smaller organisations with lower overall pay, typically found in healthcare, social assistance, and education.

Virgin, Qantas Pay Gaps

For the second consecutive year, the WGEA has reported that across some of Australia’s biggest companies, 72 percent of employers are still paying men more than women.

Virgin Australia leads with a 45.2 percent gender pay gap, closely followed by Qantas at 41.2 percent.

Other major companies such as Healius Ltd, Premier Investments, and Sonic Healthcare report gaps hovering around 36 percent, with the Macquarie Group at 30.3 percent.

In the banking sector, Commonwealth Bank and Westpac have average gaps of 22.4 percent, while National Australia Bank comes in at 19 percent and ANZ follows closely at 18.8 percent.

However, major companies like Woolworths, Coles, Wesfarmers, and BHP have made improvements, with gender pay gaps falling below the national average of 21.8 percent.

Woolworths holds a gap of 10.5 percent, while Coles Group is at 6.1 percent.

Data Previously Challenged

Senator Malcolm Roberts from One Nation previously questioned the agency’s claims, arguing that their data doesn’t compare how much a man and a woman doing the same job at the same company are paid.

In response to the previous report, he took to X (formerly Twitter) and described the data as “completely misleading,” adding that it doesn’t account for factors like work choices, hours worked, overtime, and job risks.

He further pointed out, “Paying women less than men has been illegal for decades, as the WGEA admitted to me.”

He also questioned the credibility of the WGEA, stating, “With 78 percent of the WGEA workforce being female, they shouldn’t be lecturing anyone on gender equality while failing to achieve it themselves.”

Similarly, Nationals Senator Matt Canavan previously argued that such reports simply breeds resentment and division.

“The Gender Pay Report is useless data because it does not even correct for basic differences like hours worked,” he said in 2024.

Effect of Legislative Action

The WGEA report has renewed calls for stronger legislative action to address the gender pay gap.

Greens Leader Senator Larissa Waters was outspoken, stating, “The latest WGEA data is a stark reminder that women continue to be undervalued and underpaid in our society.”

She called on the government to act swiftly, especially with a federal election looming.

Australian Council of Trade Unions’ President Michele O'Neil joined the criticism, pointing to recent announcement by Opposition Leader Peter Dutton to restrict work-from-home policies for public servants if elected to parliament.

O'Neil said these policies disproportionately affect women, who often juggle work with caregiving responsibilities.

“Government policies have a direct impact on the gender pay gap,” she said.