Tony Abbott says the Iraqi prime minister did not share details of an alleged plot to attack the New York and Paris subways during their meeting in the US.
The prime minister says he had wide-ranging talks with Iraqi counterpart Haidar al-Abadi on the sidelines of a special meeting of the UN General Assembly in New York.
He said the Iraqi prime minister was grateful for the support of Australia in trying to defeat the threat posed by Islamic State terrorists, but the alleged plot to target the subways was not raised.
"No (but) we had a very wide-ranging talk about the situation in the Middle East, about the fact that the problems in the Middle East are reaching out to Australia through the presence of, regrettably, a significant number of Australians fighting with these terrorist groups," he told the Seven network.
"We talked about the assistance Australia is prepared to offer the government of Iraq, our Super Hornets, our military advisers," Mr Abbott said.
"But there was certainly no talk about a potential terror threat to the New York subway."
Questioned if the Iraqi prime minister had asked for the deployment of the Australian military, Mr Abbott said: "He's made it very clear for some time now that he welcomes our contribution.
"He certainly believes that this is the world's fight, it's not just Iraq's fight and Syria's fight and he's right because this murderous terrorist group ISIL is a threat to everyone not just the citizens of Iraq and Syria.
"And that's why Australia is prepared to play its part, not just as a good global citizen, but also as a country which understands that domestic security now begins abroad as well."
Asked if he was concerned about escalating racial tensions in Australia, he said people must remember the current situation was about terrorism crimes, not religion.
He said the threat of lone wolf terrorism in Australia was a deep concern.
"That seems to be what we saw outside of a Melbourne police station a couple of days ago," Mr Abbott said.
"Yes, I'm very concerned but I want to assure people that our police and security and intelligence agencies are as professional as any in the world.
"And we are maintaining maximum vigilance to keep our country safe."
Earlier, the Iraqi prime minister said captive Islamic State militants had told his intelligence agents of the alleged subway plot.
But a senior Obama administration official said no one in the US government was aware of such a plot, adding that the claim was never brought up in meetings with Iraqi officials this week in New York.
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