Treasurer Scott Morrison has called for cool heads to prevail as Britain edges towards a possible exit from the European Union.
Mr Morrison has been briefed by Treasury on the medium and long-term impacts of a Brexit.
"The advice that we have is that Australia's exposure in these circumstances is very limited," Mr Morrison told reporters in Sydney on Friday.
Mr Morrison said the key issues were around immigration, national sovereignty and how it might impact on labour markets and the cost of investment in the UK.
There would also be some "internal GDP effects" in the UK and European Union.
"We will see some short-term volatility ... but the smarter investors are always the cooler heads in these circumstances, and the government has a cool head on these matters."
He said the government had a clear economic plan.
"The biggest threat is not Brexit or any other matter right now," Mr Morrison said.
"The choice Australians have to make is, do they want the instability and chaos of Labor, Greens and independents, or the stability of the Turnbull government with a strong national economic plan to move through all the challenges we face."
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