The Five Eyes alliance, usually used for intelligence purposes, will be used to create "trusted supply chains," Prime Minister Scott Morrison has told government MPs.
Local manufacturing was a hot topic with MPs returning to Canberra at Tuesday's joint party room briefing, after the response to the COVID-19 pandemic exposed weaknesses in accessing vital supplies.
Government leaders confirmed earlier reports that the alliance, which includes the United States, Canada, the United Kingdom and New Zealand, would be used for economic purposes as well as strategic.
In an address to a joint party room meeting that was almost back to normal pre-pandemic levels of attendance, Mr Morrison said the government needed to stay on top of the health issues but also get Australians back into jobs.
"We need to apply our time-tested philosophical principles," Mr Morrison said, even to problems that would take the government out of its comfort zone.
Treasurer Josh Frydenberg said "tough times" were ahead in the lead up to the budget, which will be delivered in October.
In recent days the government has made a string of announcements regarding the economy, including a stimulus package for the building industry and a return to the child care subsidy scheme, a move which has been widely criticised.
On Tuesday the government announced the instant asset write off scheme would be extended until the end of the year, which is estimated to cost $300 million.
Businesses with turnover of less than $500 million will be able to bring forward tax deductions for assets that cost less than $150,000.
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Parliament will sit on Wednesday, Thursday and Friday this week, with most members of parliament returning to Canberra, after previous sessions were conducted with greatly reduced numbers.