The shipment pf 25 tonnes of nuclear waste is being transported via the BBC Shanghai to Port Kembla in New South Wales before it is moved to Lucas Heights for temporary storage.
The waste was sent to France in 2001 as one of eight shipments of nuclear waste that Australia sent overseas.
The federal government is in the process of setting up a permanent dump site for returned nuclear waste from Europe and also for medical waste produced domestically.
About 500 police have been mobilised on the land and 50 officers engaged in on-water operations to ensure the waste is safely transported to Australian Nuclear Science and Technology Organisation (ANSTO) facility in Lucas Heights, southern Sydney.
Greenpeace said it is concerned about the potential for radioactive contamination.
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“The more you move radioactive waste around, the more you increase the likelihood of an accident which could spread radioactive contamination into the environment," said Greenpeace Australia campaigner Emma Gibson.
“The government is now saying Australia could be a nuclear waste dump for the rest of the world. Imagine the corners that could be cut when these dangerous shipments arrive regularly."
Six sites in Australia are being considered as possible locations for a permanent dump site, with three of those locations in South Australia.
The state is currently holding a royal commission to examine what role South Australia should play in developing the nuclear industry.
