Scott Morrison says he expects China to provide an explanation on the lasering of an Australian military aircraft by a Chinese warship off the Top End.
The prime minister said Australia is using diplomatic channels to call for an investigation into the incident and called on China to explain how such a dangerous act could be undertaken by "what is supposed to be a professional defence force".
"This is completely unacceptable and so we have demanded there be an investigation of what occurred on the vessel," he told reporters on Monday.
"It was dangerous, it was reckless and it was unprofessional for what should be a sophisticated navy."
Mr Morrison also fielded questions on why Australia had publicly issued a statement against China when the government has been reluctant to name the country in the past.
"It happened. It is indisputable. It was a Chinese naval vessel," he said.
"It was possible that people could even see the vessel from our mainland so we disclosed that because this needs to be called out."
Mr Morrison said all "peace-loving" countries in the region should be demanding an answer from China.
"It's an Australian surveillance aircraft this time, what's next? It's very important that China explain themselves for this act of recklessness," he said.
He said the Chinese vessel had every right to traverse Australia's exclusive economic zone, just as Australian, United States and United Kingdom ships have the right to travel through the South China Sea.
"But it's not OK to be doing what occurred there," he said, questioning what Beijing's response would have been had the situation been reversed.
Defence Minister Peter Dutton said the laser had the potential to blind the crew and disrupt the aircraft's radar.
"This is not a laser that you buy down at the shop," he told the Nine Network.
"This is a military technique and it is military-grade equipment."
Mr Dutton will write to his Chinese counterpart as defence department officials reach out to their counterparts, but a response may not be forthcoming given the frosty bilateral relationship.
"We will see what sort of response, if any, we get," he said.
"We want that open dialogue, we want a good relationship. But Australia is not going to be bullied, we aren't going to walk away from our obligations to the rule of law."
Labor has also condemned the Chinese PLA-Navy vessel's action and sought a briefing from the defence department.