Gender equity reporting guidelines risk being too heavy-handed says a leading industry association in Australia.

While it strongly supports gender equity, measures to improve equity need to be workable and balanced, according to Ai Group.

Ai Group chief executive Heather Ridout said "The government is proposing to go much further than the existing reporting requirements while the government procurement guidelines will be of concern to industry. It is essential that a heavy handed approach is not taken. Before proceeding to draft legislation, the government needs to discuss its proposals in detail with industry to ensure that they are workable.

"For example, reporting on pay equity could be extremely difficult in practice given the varied nature of jobs. There are a huge number of elements to what would be considered fair remuneration.

"It is to be hoped that that the proposed on-line reporting system will make it easier to comply.

"Clearly the best outcomes will be achieved if there is broad industry support for the changes but this will not be achieved if the Government does not adopt a consultative approach in developing its proposed legislation," Mrs Ridout said.

The federal government announced today it will not do business with companies not actively pushing gender equality in the workplace. Reforms include spot checks on businesses to assess fair pay and working conditions for women.

The new legislation will be introduced this year, and new reporting requirements for companies will come into effect in 2013.