Iran's envoy in Australia has been summoned on numerous occasions by top officials over the treatment of women as well as reports of intimidation.
The federal government is considering targeted sanctions under Magnitsky legislation.
Widespread protests erupted in Iran and around the world after the death of Iranian woman Mahsa Amini at the hands of the nation's morality police for not correctly wearing her hijab.
Reports of violence against protesters in Iran, especially women, then emerged.
Senior foreign affairs department official Marc Innes-Brown said he'd summoned the Iranian charge d'affaires in Canberra on three occasions to convey concerns "in the strongest terms".
The Middle East division assistant secretary also spoke to the envoy on a separate occasion to allay concerns about reports of intimidation and threats against Australia's Iranian community.
Liberal senator Claire Chandler questioned Foreign Minister Penny Wong on whether Iranian individuals sanctioned by Canada, the US and UK should face the same fate under Australia's laws.
"It wouldn't be appropriate for me or any foreign minister to engage in speculation about potential listings," Senator Wong told a budget estimates hearing.
"The government's position about this issue, about the human rights abuses, is clear."
Asked why targeted sanctions for human rights abusers hadn't been applied already, Prime Minister Anthony Albanese said on Wednesday the government was mindful of the impact on Australian businesses.
"We actually don't have a vast number of economic relations between Australia and Iran," he told parliament.
"One of the things we have done is make sure ... any action that's taken, we're fully cognisant of the implications for Australian businesses.
"But we'll continue to speak out."
The federal opposition has pledged to back any government action over Iran's human rights abuses.