Under reforms announced today, businesses will have to disclose how many staff are women and how many of them occupy senior roles.
Under current rules, companies are required to report to government on workplace equity plans but they can apply to be excused from doing so.
With the changes, they will have to spell out employment conditions, including equal pay, and flexible work arrangements for male and female employees.
CEOs and employee representatives will have to sign off on the markers and provide copies of the report to employees and shareholders.
The Equal Opportunity for Women in the Workplace Agency will receive an extra $11.2 million in federal funding over four years to monitor the reforms.
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Status of Women Minister Kate Ellis says it will be costly for business not to comply with updated equal opportunity laws.
Government contracts were worth $42 billion, she said.
"Any business who's saying they're not interested in having a share in over 80,000 contracts is making a pretty big decision about their bottom line," she told the National Press Club in Canberra.
"Not only are we not interested in dealing with businesses that aren't compliant but it will be illegal for us to do so."
Renamed the Workplace Gender Equality Agency, it will do regular checks to ensure companies are acting within the rules.
The reforms will let the government know exactly what is happening in all businesses with more than 100 employees, with no exceptions, Ms Ellis said.
"The agency will have the muscle it needs to make a real difference when it comes to gender equality in the workplace."
The new legislation will be introduced this year, with the first reports under the new system scheduled to start in 2013.
