Foreign Minister Bob Carr said the government in Yangon had invited the team, which is expected to join observers from other nations, including the United States, in Burma.
"We have repeatedly encouraged the Burmese government to ensure these by-elections are free and fair -- and this is an encouraging start," Carr said in a statement. "Australia hopes to see further and more comprehensive election observation missions as Burma's democracy matures."
The vote, which will see Nobel laureate Aun San Suu Kyi stand for a seat in parliament for the first time, comes a year after a quasi-civilian government took power following the end of decades of outright military rule.
Burma President Thein Sein has vowed to ensure the by-elections are transparent.
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