MAJOR resources and infrastructure projects will have to give fair consideration to Australian suppliers under new Labor laws.

Labor will put the laws to to parliament.

The government says this will be worth $1.6 billion a year in extra work to local firms.

Prime Minister Julia Gillard announced the measure on Sunday when she released the government's industry and innovation statement.

The government says local industry has been concerned that major project developers have been importing materials and equipment rather than exploring what is available in Australia.

An Australian Jobs Act will give legislative requirements for the use of local suppliers and materials for the first time.

Under the proposed laws, projects worth $500 million or more will have to develop Australian industry participation plans that set out how the developer will give local suppliers a fair chance to win work.

Projects worth more than $2 billion will also have to set up an office of Australian industry capability in their procurement headquarters.