Labor has called for urgent briefings on any expanded military role in Iraq, with reports the US is seeking Australia's support for air strikes against Islamic insurgents.
Defence Minister David Johnston says a stable and inclusive government in Baghdad is a prerequisite for Australian involvement in the fight against Islamic State forces, but he nominated RAAF's Super Hornets as "an obvious first port of call were we to participate with our friends and allies".
Senator Johnston told the ABC on Wednesday that Australia hadn't been formally approached to participate, other than to deliver humanitarian aid. There would need to be a specific invitation from Iraq, he said.
Labor frontbencher Tony Burke said the opposition wanted an urgent briefing on the developments.
"Clearly from the comments from the defence minister last night, there are new issues for us to be briefed on and we want that to happen urgently," he told Sky News.
US President Barack Obama is reportedly close to a decision on authorising further air strikes, with administration officials telling the New York Times that Britain and Australia may be asked to join the campaign.
Immigration Minister Scott Morrison, who is a member of the cabinet's national security committee, said people shouldn't leap to conclusions about how the government may respond to the Iraq crisis.
The government would carefully and methodically consider any requests for military involvement, he told Sky News.
"The thing that would govern all our judgments would be 'what is in Australia's national interest'?"
Deputy Labor leader Tanya Plibersek said the international community had a responsibility to provide humanitarian assistance.
"Anything more than that has to be after a great deal of thought and consideration," she told ABC radio.
Australian Defence Force Chief Mark Binskin believes the Islamic State can be defeated on the battlefield.
Air Chief Marshal Binskin says the jihadists are "bunch of thugs" and Iraq needs to be given the military strength to defeat the organisation that has seized control of parts of the country's north.
"You will have to take them on on the battlefield. There's no doubt about that. That's a part of their strength - their successes," Fairfax Media quotes him as saying.
"There's no doubt that they're highly capable but they're limited by the things that limit other forces - they've got to have a resource base, they've got to have a logistics base and the support base.
"And you'd have to think that's questionable for a long term campaign.
"They're not undefeatable."
Greens deputy leader Adam Bandt said the prime minister must explain to parliament whether Australia was planning to commit forces in Iraq.
Mr Bandt has repeatedly called for any military action to be debated and approved by parliament.
"Foreign military involvement in Iraq has actually contributed to making this worse and there are real questions about what it will mean for Australia's safety and potential blowback if Australia gets involved in bombing another country," he told reporters in Canberra.
Tony Abbott had not made the case for military involvement, he said.
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