The Morrison government is exploring options for ground-based space defence capabilities, in response to emerging threats from abroad.
The establishment of electronic space warfare capabilities would seek to detect and deter attempts to interfere with or attack Australia's use of the space domain, according to the Department of Defence.
The Australian Defence Force will provide recommendations to government on what would be required to improve access to space-based communications, intelligence, surveillance and reconnaissance.
In a statement, Peter Dutton said assured access to the space domain was critical to war-fighting effectiveness.
The Defence Department said the 2020 Defence Strategic Update and 2020 Force Structure Plan had called for options to enhance Defence's space control through investment in capabilities to counter emerging space threats.
As part of the plan, the federal government will invest $270 billion over the next 10 years to upgrade the capability and potency of Australia's defence force.
In addition to increased space capabilities, the investment includes more potent strike weapons, cyber capabilities and a high-tech underwater surveillance system.
The potential establishment of space electronic warfare follows an announcement of a Defence space division to be headquartered in Canberra as early as next year.
Comprising military officers from the army, navy and air force, the Canberra space division will be established with the goal of better protecting satellites from attack.
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Mr Dutton said space electronic warfare was a capability that would not create debris or damage the space environment.
"Defence supports efforts to promote international norms, transparency and cooperation in upholding responsible behaviour in space," he said.
