Malcolm Turnbull has condemned North Korea after receiving a security briefing on the rogue nation's missile launch over Japan.
The prime minister confirmed the intermediate range ballistic missile flew over the north of the country and landed about 1000km to the east of Japan in the Pacific Ocean.
"Australia condemns this latest reckless, dangerous and provocative act by the North Korean regime which continues to threaten the peace and stability of the region," Mr Turnbull said in a video statement.
Mr Turnbull again called on all nations to impose the harshest sanctions on Pyongyang, singling out China as the country with the most economic leverage.
"They have the ability to bring North Korea to its senses without military action," he said.
Foreign Minister Julie Bishop decried the "provocative, dangerous, destabilising and threatening act" that directly breached a United Nations Security Council resolution.
However, those experienced in reading the signals from North Korea believed there were indications the rogue nation was listening to the international condemnation, she said.
This included not following up on its threats to the US territory of Guam.
"Their response is sometimes hard to assess and this current missile test is obviously another message," Ms Bishop told reporters in Canberra.
"We have seen this pattern of behaviour by the North Korean regimes over a number of decades. They ramp up the provocative behaviour and it gets to a point where they then sit down and negotiate.
"I believe that this is an indication that North Korea will be prepared to negotiate."
Sanctions on North Korea, especially those imposed by China on trade of seafood, coal and iron and lead ore, are only just coming into effect and Ms Bishop expects they will soon start to hurt.
Cabinet and its national security committee will consider the issue later on Tuesday.
Opposition foreign affairs spokeswoman Penny Wong labelled the launch a highly provocative, unlawful action.
Japan's ambassador to Australia Sumio Kusaka also condemned the launch.
However, Australians living in Japan should not be alarmed because the government was doing everything possible to protect people, he told reporters in Canberra.
