AUSTRALIA lags behind most developed countries in gender equality, and the national paid parental leave scheme is unlikely to lift its standing.

Australia was ranked 17 out of 21 Organisation for Economic Co-operation and Development countries on a new gender equality index, beating only Britain, Austria, Japan and Switzerland.

Sweden, Finland, Norway and Denmark took out top honours on the OECD's Fairness and Families Index, due to generous parental leave and family benefit schemes, as well as high female workforce participation rates.

The index, compiled by British group the Fatherhood Institute, ranked countries on 10 different markers, including gender pay gaps, parental leave and childcare spending.

It also looked at the number of men in part-time work and female representation on company boards and in parliaments.