A total of $41 million for "mission grants" of between $750,000 and $10 million is on offer, the federal government said.

"We don't want to see great Australian ideas or technology remain grounded because of a lack of support," Australian Space Agency head Enrico Palermo said on Tuesday.

The goal is to triple the sector's size to $12 billion and create up to 20,000 jobs by 2030, with new technology expected to spark innovation across many industries, including mining, agriculture and manufacturing.

Minister for Science and Technology Melissa Price said the grants would help more Australian space businesses compete internationally and take part in future space missions to the moon and beyond.

"The more Australian technology we can help launch into space, the more the global space community stands up and takes notice of our businesses and researchers," she said.

Earlier this year, some 20 projects received up to $200,000 each for feasibility studies.

For the current second round, newcomers can also apply but will need a feasibility study to support their application.

Companies will also need to contribute at least 25 per cent of the mission's costs.

Guidelines released on Tuesday aim to support companies to prepare their applications for the funding round that is expected to open in the first quarter of 2022.

Australian Associated Press