Prime Minister Malcolm Turnbull says the so-called Islamic State group is weak and Australia has no plans to send combat troops to fight it.
Turnbull was speaking after shootings and bombings in Paris claimed by IS.
Australia is part of a US-led coalition bombing the group in Iraq and Syria.
His remarks contrasted with statements made by former Prime Minister Tony Abbott, who described IS as a "death cult".
Turnbull told Australia's House of Representatives that IS relied on its propaganda network and "we must not be fooled by its hype".