Governor General Quentin Bryce has opened a national memorial ceremony in Canberra marking 92 years since the end of World War I.
The conflict claimed more than 60,000 Australian lives and about 37 million civilians and soldiers worldwide.
In homage to the 102,000 names on the nation's honour roll, 102 students laid poppies at Canberra's war memorial.
The Governor General laid the first wreath, followed by Senator Kate Lundy representing the Prime Minister, who is in Seoul for the G20 summit of world leaders.
Speaker of the House Harry Jenkins laid the next wreath.
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This year, a further 10 names have been added to Australia's roll of war dead, after a heavy period of casualties in Afghanistan.
A simultaneous memorial ceremony was held in Sydney.
Thousands of people observed a minute of silence in the CBD.
The normally bustling city came to a standstill as war veterans, families and dignitaries gathered at the Cenotaph in Martin Place on Thursday, the 92nd anniversary of the end of World War I.
NSW Premier Kristina Keneally, federal Defence Materiel Minister Jason Clare, NSW Lieutenant Governor James Spigelman, and NSW Opposition Leader Barry O'Farrell were among those who laid wreaths on the Cenotaph at the morning ceremony.
A large crowd filled Martin Place, many with medals and poppies pinned on their chests.
Just before 11 o'clock (AEDT), the Last Post was sounded and the Australian flag was lowered to half mast.
Silence fell as clock bells struck 11 times and heads were bowed as those gathered reflected on the bravery and sacrifice of Australian troops.
Brigadier Alison Creagh recalled marking Remembrance Day while on duty in Afghanistan.
"That was a sober reminder of what we fought for and the importance of peace," she told the gathering.
"I remember the 10 Australians who lost their lives this year fighting in Afghanistan, serving our country and fighting to protect the people of Afghanistan."
The names of those 10 soldiers would be added to the honour roll of the Australian War Memorial in Canberra, "so that we can remember them ... along with those who also made the ultimate sacrifice," Brigadier Creagh said.
