Australia's catch-up in the space arms race will focus on information and cyber warfare, including helping other countries protect their orbital assets from dangers.
Space Agency chair Megan Clark says nations were responding to the increasingly militarised and weaponised space capability of the United States, Russia and India, which have the capability to destroy or disarm space assets.
"Other countries are responding naturally to this and recognising the need to protect assets and national space assets as well, but also to maintain their space situational awareness," Dr Clark said on Tuesday.
"This is something that Australia can really step into and help other countries."
Threats come from space debris and foreign-operated anti-satellite systems.
Japan joined that arms race last year, with the launch of its Space Domain Mission Unit. China is also understood to have similar capabilities as Russia and the United States.
Final Frontier: Space control will be 'realm of cyber warfare'
