State government deals with foreign countries like Victoria's controversial agreement with China could face cancellation under a new Morrison government plan.
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The coalition is pursuing legislation to review and scrap state, territory, local council and public university deals with other nations.
It would also allow the foreign minister to nip major agreements in the bud after states and territories notify an intention to negotiate with another country.
All deals would need federal approval and could be revoked later.
Councils or universities would not need approval to negotiate but would need to tell the minister before striking a deal with foreign government entities.
Victoria's non-legally binding sign-on to China's Belt and Road initiative has prompted concerns about foreign influence.
But Premier Daniel Andrews insists the deal is about boosting jobs and investment.
"If the prime minister has time to be doing those things, that's fine for him," he told reporters on Friday.
"I don't - I am exclusively focused on fighting this virus and then making sure we have the strongest economy that we can possibly have on the other side of this."
Mr Andrews appeared testy when asked about the potential impacts on trade.
"I dare say given announcements the prime minister has made today, he'll soon no doubt be able to list a full range of other free trade agreements and other markets we'll be sending Victorian products to," he said.
"I look forward to that."
Under the legislation, the foreign minister would have the power to terminate private contracts stemming from foreign deals, such as the Belt and Road initiative.
Prime Minister Scott Morrison said Australians rightly expected the Commonwealth to set foreign policy.
"It is vital that when it comes to Australia's dealings with the rest of the world we speak with one voice and work to one plan," he said.
"There is only one sovereignty in Australia and it's Australian."
He said it was important the Commonwealth knew about all state government, council or university agreements.
"Where any of these agreements undermine how the federal government is protecting and promoting our national interests they can be cancelled," Mr Morrison said.
Within six months of the new regime, states and other bodies covered will have to complete a stocktake of existing agreements.
The minister will have the power to cancel deals if they are inconsistent with foreign policy or detrimental to relations with other countries.
A public register will detail information about agreements and ministerial decisions.
The government is keen to pass the bill before the end of the year and will introduce legislation to federal parliament next week.
In recent weeks, security agencies briefed state and territory governments on implications for agreements that would be covered.
Federal Opposition Leader Anthony Albanese supports the legislation in principle but wants to see the details.
"The national government should be in charge of our foreign policy," he said.
"One of the things it should seek to do at all times is to protect Australia's national interest."
Australian Associated Press
