More than 500 Iranians have been killed in a violent crackdown on the demonstrations, along with dozens of security personnel.
Thousands of protesters have been arrested and human rights groups fear the true death toll could be in the thousands.
Kylie Moore-Gilbert, an expert on Middle Eastern studies who has spoken extensively about her detention in Iran, said the protest movement was "existential" for Ayatollah Ali Khamenei's regime.
"In my view the latest protests are very significant, due to the unprecedented weakness of the regime," said Dr Moore-Gilbert, who was released in late 2020.
"Following the decimation of the Islamic Republic's terror proxies Hamas and Hezbollah, as well as the Assad regime in Syria, and last year's 12-day war with Israel, the regime in Iran has been exposed as incredibly vulnerable.
"Never before has it been this close to collapse."
Prime Minister Anthony Albanese said he hoped the Iranian supreme leader would be "removed by the people".
"We stand with the people of Iran in fighting against what is an oppressive regime, one that has oppressed its people,'' he told reporters at Parliament House on Tuesday.
"One that is, I hope ... removed by the people,"
Foreign Minister Penny Wong said Iran's crackdown on protests had become increasingly brutal as the theocratic regime tried to retain power.
"What I would say to that regime is, not only is the world calling on you to stop killing your people, but a regime that requires the murder of its own people to maintain authority is not a regime with any legitimacy," she said.
US President Donald Trump has threatened military action against Iran if it continues killing protesters and has announced punitive measures for all nations that traded with the Middle Eastern country.
Mr Trump said he would impose a 25 per cent tariff on American imports from any country that trades with Iran, a move which appeared to be aimed at further isolating Tehran on the world stage.
The move sent government officials scrambling to figure out whether Australia would be affected by the new trade barrier.
While the federal government has sanctions imposed on the Iranian regime, there was still more than $700 million in two-way trade between Australia and Iran in 2024, according to the Department of Foreign Affairs.
Government sources said they were seeking advice on Mr Trump's announcement, but pointed out the US also trades with Iran.
Officials believed the final text of the American trade restrictions could differ from the president's initial announcement.
Trade Minister Don Farrell said he needed to see more detail about what Mr Trump was proposing.
"We need to have a look at that. That's a very recent announcement," he told reporters in Adelaide on Tuesday.
