Prime Minister Tony Abbott doesn't want to see Australia's signature spread put on "Vegemite watch" amid concerns it's being used to brew alcohol.
Mr Abbott says it is important to ensure remote communities are being properly policed but insists his is a deregulatory government.
"The last thing I want to do is have a Vegemite watch," Mr Abbott told reporters in Brisbane on Sunday.
"Vegemite, quite properly, is for most people a reasonably nutritious spread on your morning toast or on your sandwiches."
The comments come after Indigenous Affairs Minister Nigel Scullion said businesses in dry communities had a responsibility to report any Vegemite purchase that may raise their suspicions.
But the government wasn't seeking to place any restrictions on the sale of the spread, he said.
"Addiction of any type is a concern, but communities, especially where alcohol is banned, must work to ensure home brewing of this type does not occur," Senator Scullion said.
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