Communities fearing widespread job losses from decarbonising homes, business and industry will get help in the federal budget.
Funding for a National Net Zero Authority announced on Friday is expected to benefit coal-dependent communities across Australia and usher in new industries.
The Australian Manufacturing Workers' Union welcomed the skills and training support for workers who need to bridge the gap to enter new jobs.
The new statutory body will also encourage and direct private investment into clean energy opportunities in traditional mining and energy communities.
Union boss Steve Murphy said the new body has the potential to be one of the Albanese government's greatest legacies.
"This is a big, big day - for mining and energy workers, for their communities, for the union movement and for the country," he said.
"It delivers on the promise Labor made to workers that they would be looked after, not left behind."
The recent closure of the Liddell coal-fired power station near Muswellbrook and plans for fast-tracked power plant closures in Victoria and Queensland fuelled calls for better co-ordination to avoid chaos during the transition to clean energy.
Unions have been calling for federal support for those workers and communities who have powered Australia for decades.
Transition hotspots include the Hunter, Collie in Western Australia and the Latrobe Valley in Victoria.
Collie's worker-led "just transition" plan inked with the state government in February includes individualised jobs and training plans for every worker - including contractors and subcontractors - affected by the closure of remaining power stations.
In NSW, the Hunter Jobs Alliance of community and union groups has pushed for more support for energy and mining workers.
The newly elected Minns government has pledged to create a regional Hunter Just Transition Authority, with the impending closure of the country's largest power plant Eraring adding to uncertainty.
The new federal authority will work with local, regional and state bodies to ensure better co-ordination.
But business and investors remain concerned Australia will miss out in the global race to attract clean energy capital and talent unless bigger subsidies are made available in Tuesday's budget.
The Business Council of Australia, Australian Council of Trade Unions, World Wide Fund for Nature-Australia and the Australian Conservation Foundation joined forces to push for a body to manage the transition. Independent Senator David Pocock also called for a transition authority to help households and businesses go electric, while the Greens want a body with more extensive powers.
But households need a practical "one-stop-shop for household electrification", according to Independent Senator Allegra Spender.
She says consumers need help navigating local, state and federal incentives, particularly when installing systems to support electric cars or for switching to electric appliances from gas.
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