The looming arrival of a deadly strain of bird flu in Australia has prompted the federal government to set up a $95 million preparation fund as part of a swathe of biosecurity and environmental measures.

Labor announced on Sunday it would fund a host of initiatives designed to prevent or reduce the impacts of the H5N1 strain of avian influenza in Australia, which has not yet been detected in the country but has caused higher mortality and severe disease in birds and other animals globally.

Agriculture Minister Julie Collins said the H5N1 strain of avian influenza "presents a real and significant threat to Australia's agriculture sector".

Ms Collins said the impacts already felt in Australia from other strains of bird flu highlight the need for continued funding in "national preparedness".

"Today's announcement will strengthen our ability to detect any incursion and enhance biosecurity responses where it counts – working in partnership to collaboratively manage national biosecurity threats."

Over 2 million chickens have been euthanised across the country this year as a result of the spread of three other strains of avian influenza.

Biosecurity responses, a public communication campaign and wild bird surveillance will be funded to the tune of $37 million as part of moves to protect agricultural industries in the event of more bird flu outbreaks. 

Australia is the only continent that has so far escaped H5N1, but other strains such as the H7 group have hugely affected commercial egg production in multiple states and led to numerous warnings that H5N1 is not far from our shores.

A further $35.9 million in Labor's announcement has been set aside for environmental measures including protecting threatened species at the state and territory level, as well as the conservation of already captive vulnerable species (such as zoo populations).

The possible impact on native species already at risk of extinction is particularly concerning, Environment Minister Tanya Plibersek said, especially those "not well placed to cope with significant mortalities". 

Ms Plibersek said the endangered Australian sea lion and sea birds such as the Christmas Island frigatebird could be devastated by the H5N1 strain in particular.

The Invasive Species Council welcomed the funding, with advocacy director Jack Gough calling it "incredible news" but "only a down payment" should H5N1 reach Australia. 

"The Albanese government is finally investing a serious amount into preparation for what could be the worst environmental disaster in Australia's history," he said.  

"We will not be able to stop this disease from arriving, but we know that vaccination, carcass removal and stopping disturbance can reduce death rates and save species like Tassie devils, sea lions and black swans."

Mr Gough said the funding should be the first step "in a monumental change in the way that environment biosecurity threats are managed in Australia". 

Flu vaccine stocks will be also replenished as part of a further $22.1 million package for the National Medical Stockpile, part of the public health response to bird flu.  

Health Minister Mark Butler said the funding was intended to ensure authorities are as prepared as possible for any potential cases.

"Although human infections with avian influenza viruses are rare and the current risk to the Australian population remains very low, there is no room for complacency," he said.