The Australian Labor Party is to put up a new law that will make major project developers look to domestic suppliers first.
The federal government says this will be worth $A1.6 billion per year in extra work.
Prime Minister Julia Gillard announced the measure on Sunday.
The federal government says major project developers have been importing materials and equipment rather than exploring what is available in Australia.
An Australian Jobs Act will give legislative requirements for the use of domestic suppliers and materials for the first time.
AAP reports that under the proposed law, projects worth $A500 million or more will have to develop Australian industry participation plans that set out how the developer will give local suppliers a fair chance to win work.
Projects worth more than $A2 billion will also have to set up an office of Australian industry capability in their procurement headquarters.