Malcolm Turnbull has strongly endorsed Donald Trump's move to designate North Korea a state sponsor of terrorism.
The prime minister said the US president's decision, which allows for additional sanctions, mirrored an international commitment to tackle the rogue state.
"Kim Jong Un runs a global criminal operation from North Korea pedalling arms, pedalling drugs, engaged in cyber-crime and of course threatening the stability of region with his nuclear weapons," Mr Turnbull told reporters in Sydney on Tuesday.
The Republican president, who has traded insults with the North Korean leader, said the US Treasury Department will announce the additional sanctions on Tuesday.
North Korea was removed from the state sponsor of terror list under former president George W. Bush, in an attempt to advance denuclearisation negotiations.
But relations between the two countries have deteriorated as North Korea pursues nuclear weapons and missile programs in defiance of UN Security Council sanctions.
It has made no secret of its plans to develop a missile capable of hitting the US mainland, as well as firing two missiles over Japan.
Foreign Minister Julie Bishop said North Korea posed a threat to Australia's region.
"In the last few years we've seen state-sponsored assassinations, we've seen cyber attacks against the United States and continuing violation of numerous UN security council resolutions prohibiting their ballistic missile and nuclear weapons programs," Ms Bishop told Sky News.
She said the sanctions would place greater restrictions on foreign aid and arms sales to the country.
"The United States is keeping maximum pressure both diplomatic and economic to bring North Korea back to the negotiating table."
