Australia could soon have its own space agency, following the recent announcement of a Government review into Australia's space capabilities.

Most developed nations have a space agency, including New Zealand, which announced one last year, reports the ABC.

"This is really about how do we set the scene for developing a space industry in Australia," Industry Minister Arthur Sinodinos said.

"And in that context, what role changed governance arrangements could play, including possibly the role of a space agency.

"We'll look at the pros and cons of this.

"This is really a way to bring the whole issue to a head."

Remarkable growth

The global space industry's revenue is estimated at more than $420 billion annually.

And according to the Government, the sector has grown by about 10 per cent each year since the late 1990s.

Australia already has significant involvement in national and international space activities, but a dedicated agency would help shape the development of a cohesive space program and provide a stronger platform for international collaboration.

With ever-increasing dependence on satellites for communication and navigation, an Australian space agency could oversee the launch of satellites.

Keeping jobs in Australia

But, initially, an Australian space agency's main role would be to help keep jobs and $3 billion of spending in Australia rather than flowing overseas.

The agency would also help Australians take advantage of satellite technology, especially for farmers.

"There are a lot of ways we do work in the space sector already, this is about building on those opportunities," Senator Sinodinos said.

"We want to have industry here that can command a premium because they've got a competitive advantage." 

An expert panel, chaired by former CSIRO boss Dr Megan Clark will lead the review and is expected to report by the end of March next year.