For the next six months people travelling on Iranian passports will be barred from visiting Australia for tourism or work, the Home Affairs department said.

"The conflict in Iran has increased the risk that some temporary visa holders may be unable or unlikely to depart Australia when their visas expire," it said in a statement.

Some exceptions would be made on a case-by-case basis, the department added, such as for the parents of Australian citizens.

"There are many visitor visas which were issued before the conflict in Iran which may not have been issued if they were applied for now," Home Affairs Minister Tony Burke said.

"Decisions about permanent stays in Australia should be deliberate decisions of the government, not a random consequence of who booked a holiday."

More than 85,000 Australian residents were born in Iran, according to government figures, with vibrant diaspora communities found in major cities such as Sydney and Melbourne.

Australia angered Iran this month when it granted asylum to seven players and officials from the visiting women's football team.

The players were branded "traitors" at home after refusing to sing the national anthem before an Asian Cup match -- a gesture seen as an act of defiance against the Islamic republic.

Five of those seven later reversed their decisions to seek sanctuary in Australia, fuelling suspicions their families had come under threat.