Malcolm Turnbull says China should use its leverage with North Korea to ensure peace and stability on the peninsula.
On Sunday, a North Korean missile flew 700km and reached an altitude of more than 2000km, according to officials in South Korea and Japan.
It was further and higher than an intermediate-range missile North Korea successfully tested in February from the same region of Kusong, northwest of its capital, Pyongyang.
The US Pacific Command said it was assessing the type of missile but it was "not consistent with an intercontinental ballistic missile".
The prime minister said it was another example of the rogue state's "reckless and provocative and unlawful conduct".
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"The greatest responsibility for bringing North Korea to its senses lies with China," he told reporters in Sydney on Monday.
"They have the greatest leverage and the greatest responsibility.
"We look forward to enhanced cooperation between China and the United States and the other nations, including ourselves, focused on ensuring that there is peace and stability on the peninsula."
South Korea's military said on Monday more analysis was needed to verify claims the missile test was a technical advancement.
