Australia on Thursday announced a United State-style scheme to pour public money into manufacturing and clean energy industries, joining the global race to build a cleaner and more resilient economy.

Prime Minister Anthony Albanese unveiled the "Future Made in Australia Act" to help compete with global partners who are providing massive subsidies to new industries.

The centre-left Labor Party prime minister said Australia needs to be willing to break with old orthodoxies and pull new levers to advance the national interest.

Albanese said Australia could not afford to sit on the sidelines, stressing that being in the race does not guarantee the country's success. 

Albanese described that the climatic and economic changes are underway. 

The Future Made in Australia act, to be discussed by parliament this year, would mark a departure from Australia's decades-old free market policies on trade and investment.

Though no figures are given, the taxpayer-funded incentive scheme aims to compete with other nations' efforts, such as the United States President, Joe Biden's massive investments through the US Inflation Reduction Act.

Other trading partners, including China, the European Union, Canada and Japan have also heavily invested in their industrial base and manufacturing capabilities.