An independent report says Australia can no longer freeload off other countries when it comes to collecting vital satellite data.
It also warns the country is in danger of falling behind when it comes to floods of complex data from new satellite systems.
The Federal Government-sponsored report An Australian Strategic Plan for Earth Observations from Space outlines a 15-year plan for collecting defence, weather and other data using satellites.
The report says Australia must be equipped to handle observations from space which will provide critical data for monitoring climate change, rising sea levels and greenhouse gas emissions.
Australian Academy of Science president Professor Kurt Lambeck said there was no need for Australia to build and launch satellites, but the country's scientists should contribute to international programs.
''The importance is that we are able to contribute to missions that are being planned at the moment. I think the most important contribution we can make to the international effort is by providing a tracking capability on the ground.''
The report was commissioned by the Australian Academy of Science and the Australian Academy of Technological Sciences and Engineering.
''While historically we have leveraged goodwill through other forms of contribution to the total Earth observation system, for all intents and purposes Australia is a free-rider on the international system,'' the report says.
Professor Lambeck said overseas scientists probably knew more about Australia's environment than local scientists. ''There is a Japanese satellite that is really mapping the Australian continent on a monthly basis and with that you can see all sorts of changes in the continent,'' he said.
''At the moment we do not have the manpower to analyse all that data. It's collected, it's downloaded when the satellites come over Australia, it's stored away but we don't have the ability to make systematic use of it yet. And I think that's an area where we do need to make major national effort.''
Australian Chief Scientist Professor Penny Sackett said there should be a national office to handle Australia's involvement in satellite programs and data collection.
''What is clear to me from my position is that the rest of the world really wants to engage Australia on these matters,'' she said.
''We want to have a coordinated way to make sure that that happens and it's not simply a matter that no one knows what phone number to call.''