Australia's natural assets can spearhead a push to increase the nation's manufacturing sector and renewable energy industry, the prime minister says.
The federal government put forward its signature Future Made in Australia policy to parliament on Wednesday, aiming to safeguard the nation's control over its resources and assets for years to come.
More than $22 billion would be spent over the next 10 years to revive the nation's manufacturing base, particularly in areas such as renewable energy and critical minerals.
The plan would set Australia up for decades, Anthony Albanese said.
"(It's) the next step in building a more prosperous future for every Australian, making more things here in Australia, making our economy more resilient, creating secure well-paid jobs for Australians," the prime minister told parliament.
"In areas like green hydrogen, we have a comparative advantage going forward, and indeed as well, as the world moves to a net-zero economy, there is nowhere you would rather be than Australia."
Under the laws setting out the strategy, a national interest framework would be set up to oversee what projects would be funded.
Projects receiving funds would have to ensure jobs were safe and well paid, engage with communities, strengthen supply chains and develop skilled and inclusive workforces.
Treasurer Jim Chalmers said the strategy would help secure Australia's place in a changing world.
"(The strategy will) help make Australia a renewable energy superpower and an indispensable part of the global net zero economy," he told parliament on Wednesday.
An innovation fund will be set up to support emerging technologies such as green metals and manufacturing in clean energy.
The prime minister said the plan would provide support for the public and private sectors in the industries.
Deputy Opposition Leader Sussan Ley said the proposal would do little to alleviate pressure on the manufacturing sector.
"Australian manufacturers need a proper economic plan - they need cheaper and consistent energy, less red tape and industrial relations settings that work for businesses and employees, not the unions," she said.
The government would need the support of the Greens and other crossbenchers to pass the proposal through parliament.
Greens senator Dorinda Cox said the scheme would lock Australia into fossil fuels "up to 2050".
"We see this piece of legislation divided up across many portfolios ... but we can see right through the smokescreen," she told reporters.
"This is about coal and gas."
ACTU president Michele O'Neil said the government strategy would be a boost for workers.
"By fulfilling our potential as a world leader Australia can not only support local jobs and the reduction of Australia's climate pollution, but also contribute to cutting the world's climate pollution," she said.
The Australian Conservation Foundation said the manufacturing push would provide a strong foundation for the development of renewable energy.
"These are the industries that will propel our future - not polluting coal and gas, or non-solutions like nuclear energy or carbon capture and storage," foundation campaigner Elizabeth Sullivan said.
