The Federal Government is providing a $50 million boost to Australia's budding space industry.

Reports say the government is preparing to unveil “seed funding” to establish a dedicated Australian space agency to coordinate existing efforts in the aeronautical industry.

Experts have warned that Australia is not doing its best to capitalise on a global industry worth around $420 billion a year.

Former CSIRO boss Megan Clark recently ran a government review of the space sector, and is set to lead the new agency for its first year.