Australian space agency to create 20,000 more jobs

The federal government is set to officially launch the Australian Space Agency, setting off a race between the states and territories to host the headquarters.

Innovation Minister Michaelia Cash will announce in Perth today initial funding of $15 million to get the agency off the ground on July 1.

It will be headed by former CSIRO boss Megan Clark.

The government is setting up the agency to capitalise on the $420 billion aeronautical industry and create thousands of hi-tech jobs, with a review forecasting that the industry will be worth $12 billion by 2030.

The industry is also expected to produce 20,000 jobs for Australians over the next decade.

There is "an extraordinary opportunity to increase our share of the growing global space economy", Senator Cash told News Corp Australia.

“Space technologies are not just about taking people to the moon, they open up opportunities for many industries, including communications, agriculture, mining, oil and gas," she said.

"An Australian space agency will support the long-term development of space technologies, grow our domestic space industry and secure our place in the global space economy."

The home of the agency's headquarters is yet to be announced.

With AAP.