Queensland businesses will be prioritised for state government contracts as part of a major policy shift designed to secure jobs and give back to workers.

Premier Annastacia Palaszczuk announced the Australian-first initiative at the state Labor conference in Townsville on Saturday.

Ms Palaszczuk said it was about recognising value for money was about more than "choosing the cheapest price".

"Our new procurement strategy is unashamedly a 'Buy Queensland' one," she said.

"No longer will we be constrained by free trade agreements that have seen jobs go off-shore or interstate."

The new policy will apply to all Queensland government agencies and corporations from September 1.

Ms Palaszczuk said there would be a test applied to all "significant" contracts and local businesses - located within a 125km radius - would receive a weighting of up to 30 per cent.

"Wherever possible, one regional and one Queensland supplier will be invited to quote or tender for every procurement opportunity offered," she said.

"Preference must be given to local subbies and manufacturers on significant infrastructure projects of $100 million or more."

Ms Palaszczuk said the government spent $14 billion a year on buying supplies and services, and an additional $4 billion to build and maintain infrastructure.

"This money comes from Queensland taxpayers, it is only right we spent it in a way that benefits Queensland businesses and workers as much as possible," she said.

"We are not talking about wholesale protectionism, we are talking about putting Queensland first."

Ms Palaszczuk also used her speech to garner her troops for the upcoming "election fight", which she said Labor would go in to as underdogs.

"In the next term of parliament, I want a working Labor majority to keep driving Queensland forward and protect our state from the excesses of the LNP," she said.

"Last time, we climbed Mount Everest against all the odds.

"This time, with the LNP cosying up to One Nation, the battle will be just as hard.'

Ms Palaszczuk said there was no doubt the LNP would enter a coalition with Senator Pauline Hanson's party if it was "given the slightest chance".

"It doesn't matter what the LNP says or does, their track record is clear - they say one thing before the election, and do something completely different after it," she said.

AAP