Prime Minister Scott Morrison says next week's budget will be "necessarily different in scale" to those in generations past, with manufacturing to be a cornerstone of Australia's coronavirus recovery.
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In his pre-budget speech to the National Press Club, Mr Morrison will lay the ground for what is expected to be a big-spending budget.
Mr Morrison is framing it as one of the most significant since the end of the Second World War.
"Never before have we experienced a global recession of this magnitude in a truly modern, interconnected world economy, no longer insulated or constrained by geography and old technology," Mr Morrison will say.
"This budget will be necessarily different in scale to those we have seen for generations. It will respond responsibly to the challenge of our time and consistent with the principles we laid down at the outset of the pandemic."
Mr Morrison will announce $1.5 billion from next week's budget will one invested in helping Australian manufacturers in six key areas "scale up" and create jobs.
They include minerals processing; food and beverage; medical products; recycling and clean energy; defence; and space.
These are areas where Australia either has "established competitive strength" or are "emerging priorities", Mr Morrison will say.
"The reality is we cannot and should not seek to reach global scale in a large number of sectors," he will say.
"Don't try to do everything."
Industry Minister Karen Andrews foreshadowed plans to boost Australia's domestic manufacturing industry in key sectors in May.
While Australia was not likely to start building iPhones, government would look to build on our "comparative strengths" in mining and agriculture and find ways to "value-add" on raw materials previously marked for export, she said at the time.
Manufacturing in medical products was exposed as a weakness early in the coronavirus pandemic, when a global shortfall in masks, goggles and other protective equipment emerged.
Soldiers were even sent to help a factory in regional Victoria ramp up production of personal protective equipment, in a bid to bolster domestic supplies.
Experts have previously warned Australia was playing catch-up when it came to pharmaceutical manufacturing, which could limit our ability to make and distribute any future COVID-19 vaccines.
