In the International Energy Agency’s recent energy efficiency tables, Australia's manufacturing industry was listed as the most energy-intensive in the world, while US think tank The American Council of an Energy Efficiency Economy listed Australia 21st out of 23 nations for industrial energy efficiency, only ahead of South Africa and Saudi Arabia.

"Unlike previous programs to boost energy efficiency through greater business investment, the Australian Investment Guarantee is easily accessible to all businesses and will operate through the tax system, minimising compliance costs and maximising the benefits to business, workers and the climate," Mr Butler said.

Australian industry welcomed the tax regime, as well as Labor's planned $1 billion Advanced Manufacturing Future Fund.

"As a measure designed to lift investment, the Investment Guarantee would increase the stock of invested capital, boost the quantity of capital per worker, raise productivity and underwrite an acceleration of real wage growth," AI Group chief executive Innes Willox said. However, he remained more supportive of the Liberal government's pledge to slash the company tax rate from 30 per cent to 25 per cent.

The Australian Food and Grocery Council chief executive Tanya Barden said the regime could provide greater certainty for investment.

"Continuing to stimulate investment in site modernisation is critical, particularly in light of mounting input cost pressures, we are now in danger of drifting into a low investment trap where uncertainty about return on investment flowing from retail price deflation and rising costs are seeing investment decisions deferred or dumped,” Ms Barden said.

The Energy Efficiency Council's chief executive Luke Menzel said: "This new policy from federal Labor will help businesses make an investment decision that brings down their energy bill straight away.