Announced as part of a broader $1 billion jobs package put forward by the Gillard government on the weekend, the legislation will require project proponents to create a plan on how local firms can win work on a "full, fair and reasonable" basis.

The government said the plan would give Australian firms a "fair chance" to work on major resources projects and improve their capability to hopefully become part of the international supply chain market.

The plan, which has been a feature of the enhanced project by-law scheme for some time but has not been legislated, requires proponents to publish their AIP online and to include detail on how exactly the proponent intends to tap local talent.

In addition, project proponents on projects worth $2 billion or more will need to embed Australian industry opportunity officers within their global supply offices.

As part of a package of measures announced by the Gillard government over the weekend, small-to-medium enterprises will be granted greater access to research and development tax breaks, while companies with turnover of more than $20 billion will no longer be eligible for tax incentives.

The measures came out of a review into the Australian manufacturing sector and Australian Workers Union national secretary Paul Howes applauded the measures.

"The federal government understands that the future of Australian jobs is the most important issue facing this country today," he said in a statement.

"The sustained high level of the Australian dollar - which is now recognised as the most overvalued currency in the world - and shrinking global demand have hit Australian manufacturers for six."

The Queensland Resources Council said the measures were a disappointing mix of more spending, bureaucrats and legislation and higher taxes.

"The additional local content regulation proposed for the resources sector is based on a completely misplaced premise that Australian industry is not getting a fair shake in being able to supply goods and services to resources sector projects and operations," QRC chief executive Michael Roche said.

"In fact, the opposite is the case."

The Australian Petroleum Production and Exploration Association told MiningNews.net sister publication EnergyNewsBulletin it was unclear how the plan would benefit local suppliers, while imposing extra regulation on the sector.

"Extra regulation will not improve the competitiveness of our industry, which is presently responsible for around one-third of all private sector investment in Australia," a spokesperson said.

"And it is unclear what yesterday's announcement will do to improve the competitiveness and productivity of local suppliers to our sector."