A $26.1 million federal investment will give Australian astronomers access to large optical telescopes through a newly brokered international partnership.
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Scientists will be able to remotely draw data from the world's best telescopes situated in the Atacama Desert region of Chile from 2018 as part of a 10-year strategic partnership with the European Southern Observatory (ESO).
The Commonwealth commitment also includes ongoing average funding of $12 million a year until 2027-28.
Access to large optical telescopes and the world's best observing facilities has been identified as a critical need by astronomers for the past two decades to further cutting-edge research into planets, stars and galaxies.
Next generation facilities such as the Giant Magellan Telescope (GMT) and Square Kilometre Array (SKA) radio telescope were vital to the future of Australian astronomy, ANU Vice-Chancellor and Nobel Laureate Professor Brian Schmidt said.
"Australia's participation in big multinational collaborations like the partnership with ESO, and the GMT and SKA projects, will advance our scientific and industrial capabilities," he said.
He thanked Senator Arthur Sinodinos for taking the initiative to solve "a long-standing problem that has been facing astronomical researchers in Australia".
Professor Schmidt will lead a coalition of Australian universities to operate the the Anglo-Australian Telescope (AAT), the country's largest optical telescope, until at least 2024.
The university coalition will take over operation of the AAT from the Australian Astronomical Observatory.
"The AAT has been the heart of optical astronomy in Australia for many years and we are keen to ensure that it continues to make a significant contribution to Australian and world astronomy," Professor Schmidt said.
Experts in the field have echoed ANU's response to the 2016-17 budget announcement.
University of Sydney Head of School of Physics Professor Tim Bedding said the move would "allow our astronomers to continue their excellent work by providing access to the world's best observing facilities".
Swinburne University of Technology director of the centre of Astrophysics and Supercomputing, Professor Karl Glazebrook said the funding was a fantastic opportunity for Australians to make fundamental new advances in the field and "cements the future of Australian optical astronomy for the long-term".
Professor Lisa Kewley, director of the ARC Centre of Excellence for All-Sky Astrophysics in 3-Dimensions and chair of the Australian Academy of Science National Committee for Astronomy, said the budget announcement was "great news for the future of Australian astronomy."
"[It] enables us to continue our leadership of this important field," she said.
"ESO's Very Large Telescopes are at the cutting edge of research into planets, stars and galaxies, and this initiative gives us long-term access to the tools we need for our research."
