This is important in terms of fairness and
justice, but also because a system that
lacks procedural fairness risks creating
a backlash that can result in further
discrimination against women, such as
practices where men feel uncomfortable
working closely with or refuse to mentor
women.102
Ultimately, the Commission considers
that it is through the multifaceted reforms
outlined in this report, including a victimcentred, trauma informed and genderresponsive approach to understanding
the impacts of sexual harassment on
victims, that the faith and trust of workers
can be restored in workplace models and
institutional processes.
2.6 Understanding the cost of
sexual harassment
Sexual harassment [has] serious and
damaging effects on a workplace.
Organisations and individuals pay a
high price.103
There has been limited research into
the economic costs of workplace sexual
harassment to date.104
Under its Terms of Reference for the
Inquiry, the Commission was asked
to consider the economic impact of
workplace sexual harassment drawing
on economic modelling. In 2018, the
Australian Government Department
of Treasury engaged Deloitte Access
Economics to conduct this work (the
Deloitte Report).105
To the Commission’s knowledge, this is
the first time in any country that the cost
of sexual harassment has been quantified
across all sectors of the economy.
The Deloitte Report estimated that in
2018, workplace sexual harassment
cost the Australian economy $3.5 billion
annually, including approximately $2.6
billion in lost productivity.106 The report
found:
• The vast majority of the costs
associated with lost productivity
(approximately $1.8 billion or
70%) were borne by Australian
businesses107
• The private sector shouldered the
majority of lost productivity costs
(approximately $2.2 billion) in
comparison to the public sector
($393.7 million).108
The Deloitte Report also estimated that
in 2018, victims of workplace sexual
harassment spent $103.5 million in
accessing the health and justice systems.109
Rather than costing employers,
government and victims an estimated
$3.5 billion annually, by taking action to
prevent and address workplace sexual
harassment, Australia has the opportunity
to invest in better health and economic
outcomes for its workers and workplaces.
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