Prime Minister Julia Gillard says Osama bin Laden had a support network in Pakistan which was hiding him, but she's confident authorities in Islamabad are allies in the war on terror.
The comments came as photos emerged of the compound said to have housed the former al-Qaeda leader, clearly far removed from the 'cave' dwelling on the Pakistan-Afghan border he had been rumoured to be hding out in.
Security forces surround the home following the raid.
Bin Laden was killed in a surgical strike by United States forces on a mansion in the Pakistan city of Abbottabad.
A day after US President Barack Obama revealed the death, Ms Gillard has faced a barrage of questions on whether Pakistan aided bin Laden's decade-long evasion of authorities.
"Clearly to be able to be there he must have had some support mechanisms - absolutely," the prime minister told ABC TV.
The compound said to have housed Bin Laden.(AP)
But Julia Gillard said US Secretary of State Hillary Clinton had noted Pakistan authorities helped lead US forces to bin Laden, and the nation remained a vital ally in tackling terrorism.
"We think it is very important to keep working with Pakistan on counter-terrorism," Ms Gillard told reporters in Canberra.
"We have a memorandum of understanding to drive that cooperation.
"And we do need to recall that of the people who have suffered from the despicable violence led by Osama bin Laden or inspired by him, the people of Pakistan have very greatly suffered."
While the al-Qaeda network had been hurt by the death of its leader the terrorist group still posed a risk, the prime minister said.
"It would be a very grave error to think that because Osama bin Laden is dead that somehow the terrorism network that al-Qaeda represents is finished," she said.
In Washington, Ms Clinton met with Foreign Minister Kevin Rudd to pass on her thanks for Australia's cooperation in tackling terrorism and its involvement in Afghanistan.
Mr Rudd said it was important Australians travelling overseas took extra precautions against the possibility of reprisal attacks.
"It's equally critical that we remain vigilant against future terrorist attacks," Mr Rudd said.
"What we know from the past, these are non-discriminating in terms of where they are launched, against whom they are launched - Muslims, Christians, anybody and whatever centre in the world."
Ms Gillard says bin Laden's death shows "persistence does pay" and Australia will continue its mission in Afghanistan which had been a "safe haven for terrorism".
Defence Minister Stephen Smith said he did not believe the death of bin Laden would lead to greater risks for Australian troops in Afghanistan.
"That (retaliation) can as easily occur in a capital city in the United States or Europe as it can occur in Afghanistan," Mr Smith told ABC Radio on Tuesday
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