Australia could cancel an extradition treaty with Hong Kong after China cracked down on the city.
The federal government is also developing resettlement options for Hong Kong residents who fear political persecution under new national security laws.
"We are still considering that matter and will have more to say on that soon," Prime Minister Scott Morrison told reporters in Canberra on Wednesday.
Beijing recently passed draconian laws that criminalise subversion, secession and collusion with foreign forces in Hong Kong.
Pro-democracy protesters have since been charged for holding flags, posters and pamphlets.
Granting visas to Hong Kong residents would most likely inflame tensions with China.
Asked about the diplomatic blowback, the prime minister described the visa deliberations as a domestic issue for Australia.
"These are decisions for Australia about who we provide visas to and on what terms and over what period of time," Mr Morrison said.
"They are Australian sovereign issues, they aren't about other countries, they are about our country.
"We will make decisions about our visa program and how we run that in accordance with the rules that we've set."
Australia's Department of Foreign Affairs and Trade has warned travellers that people charged under the laws could be deported or transferred to mainland China for prosecution.
Mr Morrison said the decision to update Hong Kong travel advice was made by officials.
"From time to time, travel advisories are changed, and on this occasion the officials have upgraded that advice," the prime minister said.
A Chinese embassy spokesperson branded the suggestion Australians were at risk of arbitrary detention as ridiculous disinformation.
"Foreigners in China, including the Australians, as long as they abide by the Chinese laws, have no need to worry at all," the spokesperson said.
"However, those who engage in illegal activities, such as drug smuggling or espionage, will be dealt with according to the laws in China, as is the case in all other countries."
Shadow attorney-general Mark Dreyfus has called on the government to urgently re-examine Australia's extradition agreement with Hong Kong.
"With residents and visitors to Hong Kong now subject to extradition to mainland China for a wide variety of reasons, extradition from Australia to Hong Kong now carries the real risk of extradition to mainland China," he said.
"It follows that it may now be untenable for Australia to maintain a separate extradition treaty with Hong Kong and, if so, the government should take immediate steps to withdraw from that treaty."