A review of building Australia's space industry has been announced by the federal government.
The review, to develop a long-term plan to grow the sector, will be chaired by former CSIRO chief Megan Clark, Science Minister Arthur Sinodinos said on Thursday.
"This review is timely, given the current pace of change in the international space sector and advances in technologies that provide an environment that encourages commercial investment in space activities," he said in a statement.
Senator Sinodinos expects through developing the technical knowledge for the space sector, Australia will develop skills to grow other manufacturing industries.
Australia is currently one of just two OECD nations without a space agency.
Scientists and industry figures have told Sky News a space agency is needed, and could have massive economic and social benefits.
'I'm very excited about the timing, I'm very excited about the vote of confidence in the industry,' Dr Tim Parsons of Delta-V Space Alliance said.
'It's been estimated in Canada for example, each dollar that their space station spends, generates between seven and 11 dollars.'
Australia's first and only astronaut, Andy Thomas, has also welcomed the move.
'This is an important sector that defines the modern economy. You need to be an enthusiastic player in this sector.
The review will start later this month and is expected to wrap up by the end of March 2018.