Health workers are among those affected by the new coronavirus strain, which has killed three Chinese locals and affected four others across Thailand, Japan and South Korea.
The total number of people diagnosed with the virus has risen to 222.
Australia's Chief Medical Officer Brendan Murphy says Australians should not be concerned yet.
"So while our concern has been heightened in the last three of four days - I would like to start by reassuring the Australian public that there is no need for alarm. And the risk to the Australian public from this novel virus remains relatively low. Although we do need to keep a precautionary and active surveillance of the situation."
The virus was first discovered in China's central city of Wuhan.
It has since caused alarm because of its connection to Severe Acute Respiratory Syndrome or SARS, which killed nearly 800 people globally during a 2002-2003 outbreak that also started in China.
Its symptoms include fever and difficulty in breathing, similar to many other respiratory diseases.
Fears of the infection spreading have been emphasised by Lunar New Year, when millions will travel in China.
The US has implemented screening at some airports while Australia will employ biosecurity staff on three direct flights from Wuhan into Sydney from Thursday, 23 January.
In the meantime, Australians are being urged to stay away from live markets, and those with respiratory conditions.
The Chinese state-run Global Times newspaper says the government needs to disclose all information and not repeat the mistakes made with SARS.
Chinese officials covered up the SARS outbreak for weeks before a growing death toll and rumours forced it to reveal the epidemic.
While China's government steps up prevention efforts and searches for the source of infection, the Australian health department will work with the Department of Foreign Affairs and Trade to consider updating advice for Australians travelling to Wuhan.
