Australian sporting organisations will lose government funding if half their board members aren't women within three years.
The federal government says under a new policy, 50 per cent of board directors and chairs, and also sub-committee members, must be women or gender diverse from 2027.
If not, funding will be withheld from non-compliant national sports organisations.
"We need more women making decisions for more women," federal sports minister Anika Wells said in a statement.
"Our sporting systems are not equal and this policy will help address the gender imbalances prevalent in sports leadership.
"The incredible results by our women in Paris (at the Olympics and Paralympics) and the success of teams like the Diamonds, Stingers and Southern Stars has seen a surge in female participation but we still do not have an appropriate balance of senior leadership."
Wells released the National Gender Equity in Sport Governance Policy on Tuesday with backing from the government agency Australian Sports Commission (ASC).
Currently, only 25 per cent of national sporting organisations, and national sporting organisations for people with disability, are chaired by a woman.
And only 62 per cent of funded sports national organisations reach the required standard of gender diversity in board directors.
ASC chief executive officer Kieren Perkins said the fresh policy was crucial for long-term success in Australian sport.
"As someone who has been fortunate to be involved in sport across four decades, it's disappointing that in many respects sport looks the same today as it did 20 years ago," the three-time Olympic swimmer said.
The policy sets targets to be met from 2027 of 50 per cent of all board directors, and chairs, are women and/or gender diverse; and 50 per cent of specific board sub-committee members are women and/or gender diverse.
The policy also forms a framework to improve representation of all elements of diversity including age, cultural background and disability in the longer term.
