North Australian cities like Darwin and Cairns could now be in the firing line as North Korea continues to advance its intercontinental missile program.
Darwin is a specific area of concern, considering the United States' strong military presence in the region since 2011.
Foreign Minister Julie Bishop has told Sky News North Korea represents an increasing threat to Australia.
"The concern is now that North Korea will master the technology to mount a nuclear warhead on such a weapon. So it's the scale and the pace of North Korean testing and the development of its ballistic-missile program that makes it a threat not just to South Korea and nations in the region, but to the United States and directly to Australia."
The latest missile launch has featured the first-ever intercontinental ballistic missile, or ICBM, launched by North Korea.
The weapon is predicted to have a range of thousands of kilometres, putting parts of both Australia and the United States within striking distance.
North Korea has conducted missile-related activities at an unprecedented pace since the start of last year, despite repeated warnings from the international community.
A former commanding officer of the British armed forces, Hamish de Bretton-Gordon, a specialist in chemical and nuclear weapons, says the new weapon is a game-changer.
The United States requested an urgent closed-door meeting of the United Nations Security Council to discuss the missile launch.
While Julie Bishop says the launch is a global issue, she is calling on China specifically to increase economic sanctions on North Korea.
Chinese president Xi Jinping and Russian president Vladimir Putin have condemned North Korea's latest launch in a joint press conference at the Kremlin.
The two nations are calling for a freeze on North Korea's missile tests and nuclear program.
But they have also appealed for a suspension of large-scale military exercises by the United States and South Korea in the area.
The United States, South Korea and Japan are set to meet later this week to discuss North Korea at the G20 meeting in Germany.
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