By the end of the year shoppers will be able to see on supermarket labels how much of their food products are Australian grown and made.
The new system, which was proposed last year and signed off on Thursday by federal, state and territory ministers, uses the familiar green and gold kangaroo and a triangle, with a bar chart showing how much of the product was made or grown domestically.
However, consumers will not be able to tell where the other ingredients come from unless the company offers the information voluntarily.
The federal government says the system gives consumers clarity without being a burden on business.
Deputy Prime Minister Barnaby Joyce said the move clears up years of confusion over the meaning of the term "made with Australian and imported ingredients", joking that products may have "possibly passed over Australian air space" or could have seen Australia on TV at some point.
"People want to know when they're buying their tomato base for their pasta, whether these are Australian tomatoes or from somewhere else," he told reporters in Canberra.
Nationals deputy leader Fiona Nash hailed the breakthrough on labelling as a huge win for farmers and shoppers wanting to support local produce.
"Whether you're from Gundagai, Gympie or Gippsland, for the first time you'll be able to go into your supermarket and see very clearly how much of that product is Australian," she said.
The mandatory labels include "Grown in Australia" and "Made in Australia" indicating the percentage of Australian ingredients.
The system will roll out over the next two years.
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