Posted on: December 10, 2025
Why Every Aussie SME Needs to Tackle Work Harassment
A recent national review has revealed a confronting reality: one third of Australian workers have experienced sexual harassment at work within the last five years.
Chances are, some members of your team are aware of how damaging harassment can be. More than eight in 10 victims never file a formal complaint, leaving owners and managers with little idea until issues arise in HR or legal battles ensue.
Sexual harassment encompasses any unwelcome conduct of a sexual nature, such as advances, requests for sexual favours or sexualised comments, that would make a reasonable person feel offended, humiliated, or intimidated in a work setting.
Other forms of harassment involve unwelcome behaviour linked to a protected attribute, such as race, age, or disability, or conduct that creates a hostile or intimidating work environment, even when it is not sexual in nature.
The costs keep growing even when no one speaks up
The Australian Human Rights Commission (AHRC) has yet to release its 2024-2025 data, but experts suggest the actual number of cases is much higher because most incidents go unreported.
About one in three workers in NSW have reported experiencing workplace sexual harassment in the past five years, with higher rates among migrant, construction, and hospitality workers, says Unions NSW.
Meanwhile, Victoria’s Commission for Gender Equality in the Public Sector reports that harassment increased in 2023, particularly for women and younger people, with nearly 15.4% of women aged 15 to 24 reporting being targeted at work. Experiences were even higher for First Nations women, people with disabilities, and those in public-facing industries like healthcare and the arts.
Nationally, lost productivity alone accounts for $2.6 billion every year. Add staff turnover, investigations, and legal settlements, and the costs quickly pile up. Only 40% of those who report harassment ever see positive change in their workplace.
Boards, bosses, and small business owners now face personal liability
New Work Health and Safety laws introduced in 2025 put directors, managers, and small business owners under greater scrutiny. They sit alongside Safe Work Australia’s national ‘model’ work health and safety laws as well as the AHRC’s Positive Duty. The Positive Duty requires every employer actively prevent sexual harassment and related behaviour, not wait for a complaint.
Victoria has already taken action. New regulations implemented this month require employers to address psychological hazards with the same seriousness as physical risks. For SMEs, this includes evaluating workload pressures, inappropriate behaviour at work events, and how staff can raise concerns.
Maximum fines and penalties have increased across several states. In NSW, fines went up from 1 July 2025. A corporation can now face up to $3.9 million for serious breaches. Individual officers can face penalties of up to $800,000. Jail terms also apply for reckless conduct that causes harm, including harm linked to workplace sexual harassment.
Failing to prevent or properly respond to harassment can mean fines, legal action or director bans. Courts expect more than a policy sitting in a folder.
SMEs must show genuine action, such as regular training, a simple reporting process, and a workplace culture where problems are dealt with early. This shift means owners and directors need to stay involved and demonstrate that safety and respect are part of everyday practice.
Some sectors have extra risk. Could yours be one of them?
Industries with higher risks include retail, hospitality, mining, construction, and healthcare.
Women in mining report harassment at rates over 60 percent, and retail staff say they experience above-average verbal, physical, and digital abuse.
As well, digital harassment, such as inappropriate online contact or surveillance, is becoming a bigger problem for remote and tech-driven. Boards and owners should build scenario-based training and link complaints processes to real outcomes, not just policy statements.
