Overview
The Australian Sports Commission (ASC), in conjunction with all State and Territory Agencies for Sport and Recreation, has recently announced the National Gender Equity in Sports Governance Policy (“the Policy”).
The Policy seeks to increase the representation of women and gender-diverse people in non-executive governance and leadership roles across Australia’s sporting sector, in line with the prescribed Gender Equity Target. From 1 July 2027, sporting organisations that receive Commonwealth funding will be required to meet mandatory gender composition requirements at board and committee level.
Although formally characterised as policy rather than legislation, the framework operates as a de facto compliance regime. Failure to meet the benchmarks may expose organisations to funding consequences and heightened governance scrutiny, reflecting a broader national focus on increasing women and gender-diverse people’s representation in leadership, particularly within the sporting and not-for-profit sectors.
Background
The Policy has been developed by the Australian Government in collaboration with the ASC and adopted across federal, state and territory sport funding frameworks. Historically, gender equity targets in sport have been aspirational and encouraged through best-practice guidance. The current framework marks a shift away from voluntary commitments toward outcome-based expectations, supported by reporting obligations and funding leverage. The policy applies to national and state sporting organisations, including disability sport bodies, that rely on government funding or recognition.
What Is Changing Under the Gender Equity Framework
By 1 July 2027, affected sporting organisations are expected to achieve the following governance composition targets:
- 50% of all board directors are women and/or gender diverse
- 50% of chair or deputy chair positions are held by women and/or gender diverse individuals
- 50% of specified sub-committee members are women and/or gender diverse
The Policy is outcome-based and does not prescribe how organisations must achieve these targets. However, it also expects organisations to take reasonable and genuine steps towards compliance within the specified timeframe. Where targets are not yet fully met, organisations may be required to demonstrate active efforts – such as documented recruitment processes, succession planning and governance reviews – when assessing alignment with the Policy and continued eligibility for government funding.
Who the Framework Applies To
The framework applies to sporting organisations that receive government funding or recognition through federal, state or territory sport agencies. This includes peak bodies, national sporting organisations, state sporting organisations and disability sport bodies.
There are no general exemptions based on organisational size, volunteer status or legacy governance structures. Organisations with constitutions or election processes that make compliance difficult are still expected to take steps to align their governance arrangements with the policy.
Governance and Legal Implications
Although not legislative, the framework creates real governance and legal risk. Outdated constitutions and fixed board structures may impede compliance, while informal appointments risk invalidity and member disputes. Given the defined targets and deadline, boards are expected to actively plan for compliance rather than defer action.
Funding Risk and Enforcement
Funding is the key enforcement tool. Governance standards are increasingly built into funding agreements, with non-compliance more likely to lead to remediation, closer oversight or conditional funding than immediate termination.
Organisations that cannot show progress or a credible compliance plan may face financial and operational consequences, a familiar issue in commercial and not-for-profit practice.
Timing and Transitional Considerations
While the compliance deadline is 1 July 2027, making changes to governance structures takes time. Boards should be considering this issue now by checking whether their current governance frameworks can support compliance and what changes may be needed.
Organisations should review their constitutions and governance policies, raise the issue at board level, and, where necessary, put proposed amendments to an Annual General Meeting or call a special general meeting.
What This Means in Practice for Sporting Organisations
In practical terms, the gender equity framework requires boards to treat gender composition as a core governance issue, not a discretionary goal. Early planning helps organisations manage the process, align changes with existing governance cycles and reduce legal and operational risk.
This is an issue that organisations should start thinking about now. With many sporting bodies affected, increased demand for legal advice is expected. Organisations should get the ball rolling by reviewing governance policies and seeking assistance immediately.
Should you require assistance in reviewing or amending your constitution, or in developing governance policies to support compliance, Daniel Morgan (daniel@morganenglish.com.au) and our Workplace + Conduct Team (02 9196 8950) can assist with tailored legal and policy guidance.
