A new $160 million aircraft defence maintenance facility is set to be built in Adelaide's north.
The deep maintenance facility will be built next to the RAAF base at Edinburgh so defence aircraft can be maintained within South Australia.
The state government has committed $160 million to funding the joint federal government project.
Federal Finance Minister and South Australian senator Simon Birmingham said the facility would allow deep maintenance of P-8A Poseidon aircraft to occur in SA, rather than in the United States.
Mr Birmingham said the facility would create 200 jobs during construction and 120 ongoing high-skilled jobs.
Labor leader Peter Malinauskas said "defence was an incredibly important industry" but highlighted defence department documents that showed more than 1,000 fewer jobs would be available in 2030 under the AUKUS nuclear submarines deal compared to the previous scheme to build Attack Class submarines.
"I welcome the news of 200 additional jobs but it's just unfortunate that it's on the same day we find out about 1,000 jobs being lost from the Prime Minister's efforts," he said.
But Mr Marshall said Labor has seized a document that shows a variation in eight years' time and there were "thousands of jobs in defence".
"Of course those submarines are going to start slightly after what would have happened with the Naval Group contract," he said.
The government said construction of the facility was expected to start by mid-2023 and be fully operational by 2025.
Meanwhile, Mr Malinauskas launched Labor's election campaign on Saturday afternoon, highlighting his party's unity as a key strength and focusing on policy areas of health, jobs and education.
Mr Malinauskas said Labor would present a "credible plan" to deal with the ongoing issue of ambulance ramping in the next few weeks, including his party's plans to scrap the Liberals' promised sports and entertainment arena and channel the funds into the health system.
"Ultimately our health system needs more resources," he said.