The Department of Foreign Affairs has warned Australians in Timor Leste to stay indoors following violent protests in the capital Dili.
The warning has come after a second day of rioting in support of nearly 600 soldiers who were sacked last month after they deserted their barracks, complaining of poor working conditions.
At least two people have died, with around 100 homes and several cars also damaged in protests.
Police were among about 20 other people reported injured, as the rioters went on a rampage, setting fire to cars and shops.
Foreign Minister Alexander Downer says Australians should also avoid travelling to Timor Leste.
But Mr Downer says despite the violence, the government will not immediately assist the Timor Leste government in curbing violence.
“We really just have to do everything we possibly can, but are constrained of course by the fact that this is not Australian territory, this is the territory of East Timor and it's destiny is the responsibility of it's own government and it's own people.” Mr Downer told reporters.
But Opposition spokesperson for Foreign Affairs Kevin Rudd says the Australian government needs to play a great role in the region.
Mr Rudd says the government should be offering support to help quell any further unrest in the region.
“Coming on the back of recent developments in the Solomons, we are deeply concerned that security in our immediate region is beginning to spiral out of control.” He said.