Australia has an average gender pay gap of 12%, while data from Manatū Wāhine Ministry for Women in New Zealand highlights an average gender pay gap of 8.6%. Meanwhile, the 2023 CA ANZ Remuneration Survey Report reveals the gender pay gap for members is 13% in Australia and 22% in New Zealand.

What factors are contributing to the pay disparity between genders?

1. Career breaks cost women

One factor is career breaks, which women commonly take when starting a family. During a career break, women’s remuneration typically stands still or increases only slightly.

“One of the ways organisations could address this is by ensuring that, during remuneration reviews, women on parental leave receive at least the midpoint of any pay increase,” says Susan Doughty, chair of Diversity Works New Zealand. “That’s really key.”

Doughty advocates for growing diverse talent pipelines within organisations. “The organisations doing well have two things in common. First, they have strong direction and leadership from senior executives and boards, making this a priority. Second, they use data to make informed decisions that unpick insights from their data,” she says.

She adds that asking questions like, ‘Why is this happening?’, ‘Why now?’, ‘Who is impacted?’, and ‘What can we do about it?’ is a good starting point.

“In many organisations, women are underrepresented in leadership and overrepresented in lower-level roles such as administration,” Doughty explains.

“Family demands, including elder care and domestic responsibilities, are not shared equally between genders. These demands often prevent women from advancing into leadership positions.”

Doughty emphasises the need for well-structured incentive schemes that treat everyone fairly. “The key to re-engaging women post-career break is to treat them respectfully before, during, and after the break, and to provide flexibility,” she says. “This helps retain women in the workforce. Without such efforts, they are likely to leave.”

2. Gender equality in Australia and New Zealand

This year, the Workplace Gender Equality Agency (WGEA) began publishing gender pay gaps for Australian companies with over 100 employees, enabling chartered accountants to assess pay parity within their firms.

Nexia Edwards Marshall, RSM, William Buck, and Bentleys Queensland have gender pay gaps within the best-practice range of +/- 5%. Grant Thornton and BDO reported gaps of -8% and 7%, respectively.

While gender pay gap reporting is voluntary in New Zealand, some organisations register publicly via MindTheGap or Champions of Change.

CA ANZ supports mandatory gender pay gap reporting, believing it will drive better social and economic outcomes.

Heidi Rosser, CA ANZ’s manager of inclusive culture, confirms high interest in closing the pay gap within the accounting profession. A Sharing Knowledge webinar on the topic attracted 1,500 registrants in April, with over 700 questions submitted for Dr. Anna Cody, Australia’s Sex Discrimination Commissioner, and Dellwyn Stuart, co-founder of MindTheGap.

 

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3. Gender gains in insolvency

Insolvency firm Rodgers Reidy leads efforts to ensure women reach top positions. The firm has the lowest gender gap—not pay gap—in the industry for firms with more than 10 registered liquidators, as ranked by the Insolvency Law Bulletin.

In an industry where women represent only 11% of registered liquidators, Rodgers Reidy boasts a 28% female liquidator workforce across Australia.

Director Geoffrey Reidy FCA says the firm didn’t intentionally target gender parity. However, knowing insolvency is a male-dominated field, he actively encouraged female staff to pursue careers in insolvency.

“Historically, the industry’s male-dominated nature can be off-putting to women,” Reidy says. “It’s perceived as challenging due to the conflict involved, and the expectation of building a career within a male-focused network can deter women.”

A Parliamentary inquiry into corporate insolvency in Australia recommended reforms to eligibility requirements to improve gender balance in the industry.

At Rodgers Reidy, family comes first. “If staff need time to deal with personal matters, we encourage them to take it. It’s about getting the balance right,” says Reidy.

Rewriting the playbook

CA ANZ’s Narrowing your gender pay gap playbook, updated this year, promotes mandatory reporting and provides tools for members to analyse their business or practice’s gender pay gap.

The gender pay gap persists, especially among women aged 30–39, the typical age for having a first child. The 2023 CA ANZ Remuneration Survey Report found that 28% of men compared to 67% of women believe a gender pay gap exists.

What is the gender pay gap in Australia?

Australia has an average gender pay gap of 12%. In terms of the accounting, the 2023 CA ANZ Remuneration Survey Report reveals the gender pay gap for members is 13% in Australia.

Why is there a gender pay gap in Australia?

There are three factors that contribute to the gender pay gap in Australia, and around the world: family career breaks  impacting career progression and opportunities, gender equality and discrimination according to sex, and women’s disproportionate share of unpaid caring and domestic work.

How is the gender pay gap calculated?

Australian gender pay gaps are calculated by the Workplace Gender Equality Agency (WGEA, the Agency). The GPG is derived as the difference between women’s and men’s average weekly full-time equivalent earnings, expressed as a percentage of men’s earnings.

What is the difference in earnings?

According to WGEA, women’s average weekly ordinary full- time earnings across all industries and occupations was $1,591.20 compared to men’s average weekly ordinary full-time earnings of $1,846.50. This means that on average, women earned $255.30 less than men.