The federal government will introduce laws for its signature Future Made in Australia policy on Wednesday.
The strategy, which will spend more than $22 billion over 10 years, will look to safeguard Australia's control over its resources.
It will also seek to invest in emerging industries in the renewable-energy sector as the global economy shifts towards net-zero emissions.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers said the proposal would make the most of Australia's potential in the years ahead.
"This legislation is all about unlocking private sector investment to build a stronger more diversified and more resilient economy, powered by renewable energy, that creates secure, well-paid jobs around the country," they said in a statement.
"The best opportunities for Australia and its people lie at the intersection of industry, energy, resources, skills and our ability to attract and deploy investment."
Under the laws setting out the strategy, a national interest framework would be set up, which will oversee what projects would be funded.
Any project receiving funds would also have to ensure that jobs would be safe and well paid, engage with the communities, strengthen supply chains and develop skilled and inclusive workforces.
An innovation fund will be set up to support emerging technologies such as green metals and manufacturing in clean energy.
Independent analysis would be carried by the Treasury to determine which sectors of the economy would benefit the most from the investment.
"The future made in Australia package improves our investment environment and encourages new industries that put us on a path to net-zero and strengthen our economic resilience," the prime minister and treasurer said.
The government will need the support of the Greens and cross bench to pass its reforms, with the coalition already signalling it will oppose the plan.
The Greens said they would want to ensure funding included in the plans would not finance new coal and gas projects.
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