The federal government is considering removing the requirement for larger companies to lodge an annual report with the Workplace Gender Equality Agency.

The government is reportedly being lobbied by several business groups, which say being held to account for their workplace gender balance is costing too much money.

Employment Minister Eric Abetz is reportedly considering the calls to wind back a former Labor policy. As well as gender-based pay figures, companies with over 100 employees had to report the gender balance in job applications and promotions.

Lobbyists reportedly claim providing the gender details costs $1 billion to businesses each year.

Sex Discrimination Commissioner Elizabeth Broderick says it would be a giant backward step to remove the conditions.

“That data is absolutely critical to moving ahead,” she said in an address to Male Champions of Change; a group of business leaders focussed on gender equality.

“Reporting to an agency which is dedicated to holding data about gender is absolutely critical as a piece of gender equality machinery in this country.”

Ms Broderick says she cannot see where the companies claim the costs are.

“If you’ve got 100 people on staff, to be able to provide data on how many women you’ve got here and there... I’m sorry I just don’t see why it needs to be so onerous and costly.”

The reporting requirement was welcomed by many major companies when it was introduced, including leaders from Alcoa, ASX Ltd, ExxonMobil and the Australian Institute of Company Directors.

Reports in financial media outlets say the Business Council of Australia, the Australian Chamber of Commerce and Industry, and the Australian Industry Group are behind the push to wind-back the laws. So far, none have made official comments along those lines.

In the latest figures it was revealed that women comprise 34.8 per cent of Australian employees, while the average pay gap across all sectors of the Australian economy stands at 17.5 per cent.