Minister for women and employment Michaelia Cash admits there's a "long way to go" to close the gender pay gap, declaring more needs to be done.
Using Equal Pay Day to trumpet the government's progress, Senator Cash also admits further progress is needed to benefit both society and the economy.
The gender pay gap has closed from 18.5 per cent in 2014 to 16.2 per cent.
"Getting more women into work is priority of the Turnbull government," she said on Thursday.
The coalition was equally focused on getting women into high-paid jobs, leadership positions and non-traditional roles, she said.
"All of which will ensure the decline in the gender pay gap continues."
But the Australian Council of Trade Unions said Equal Pay Day was a "wake-up call" for Senator Cash - who has a unique opportunity to address the disparity with her complementary portfolios.
Australian unions want a government-funded parental leave scheme of 26 weeks, 15 hours free early education and care for every child per week, and an enforceable right to request flexible work arrangements.
"Pay inequality adds to financial stress for many women and that can lead to vulnerability, debt and homelessness," ACTU president Ged Kearney said.
Workplace Gender Equality Agency says women on average lag $261.10 per week behind men.
"Women working full-time need to work more than 14 months on average to earn the same as men earn in a year," director Libby Lyons said.
The gap showed women's potential was not being fully valued or realised in the workplace, she said.
"It is beyond time to change that."
