The Federal Government will seek to boost procurement from women-owned businesses.

Finance Minister Katy Gallagher has announced that the government will channel a larger portion of its $70 billion procurement budget towards companies owned and run by women. 

The new initiative is part of a broader effort to leverage government spending to promote gender equality in the workplace.

Speaking at the National Press Club, Senator Gallagher highlighted the government's commitment to ensuring women receive a “fairer slice” of the procurement budget.

“Every year, the government spends $70 billion to procure goods and services, and we think there’s more that can be done to make sure women are getting a fairer slice of that spending,” she said. 

The strategy includes voluntary cooperation with companies to meet gender equality targets, including addressing the gender pay gap. 

Companies failing to meet these criteria, even those with more than 500 employees, may find themselves at a disadvantage in the bidding process for government contracts. 

Senator Gallagher says this is an opportunity for businesses to improve their organisational structures and promote gender equality actively.

The announcement follows stats from the Workplace Gender Equality Agency' revealing a persistent gender pay gap in Australia, which stands at a median of 14.5 per cent for base remuneration and widens to 19 per cent when bonuses and overtime are accounted for. 

In response, the government has also introduced a policy to pay 12 per cent superannuation for eligible recipients of government-funded paid parental leave, marking a significant step towards aligning paid parental leave benefits with other workplace entitlements.

Senator Gallagher's announcement ahead of International Women's Day underscores the government's dedication to leading by example in promoting gender equality. 

“Government can't solve these on its own. We are showing the leadership needed on this,” she said, expressing hope that the private sector will follow the government's lead in making superannuation on paid parental leave a standard workplace condition.

The full address can be seen below.