Weapons manufacturer BAE Systems, tech giants Microsoft and SAP and major consulting and law firms are among organisations that stand to lose billions of dollars worth of government contracts if they don’t set and meet gender equality targets under legislation Labor plans to pass this year.

Businesses with more than 500 employees would likely have to prove they are meeting at least three targets set by the Workplace Gender Equality Agency if they want to pitch for Commonwealth procurement opportunities over a specified threshold, under the new regime.