Australian Prime Minister Tony Abbott says Australian special forces troops will be deployed in Iraq to assist in the fight against Islamic State militants.
Abbott says Australian aircraft will also join U.S.-led coalition strikes.
"Today, cabinet has authorised Australian air strikes in Iraq at the request of the Iraqi Government and in support of the Iraqi government. Also, subject to final legal documentation, cabinet has authorised the deployment of Australian special forces into Iraq to advise and assist Iraqi forces."
So far Australian aircraft have reportedly been limited to humanitarian aid and delivering arms to Iraqi government-backed forces.
Last month, Australia sent aircraft and 600 personnel to the United Arab Emirates in preparation for joining the coalition.
The United States has been bombing Islamic State and other groups in Syria for almost two weeks with the help of Arab allies, and hitting targets in neighboring Iraq since August.