Prime Minister Anthony Albanese said the federal government was monitoring developments in Venezuela after President Donald Trump played up the "large scale" strike in Caracas saying US forces had spirited Nicolas Maduro and his wife out of the country.
Mr Trump also said he planned to tap Venezuela's substantial oil reserves to pay for the US operation, and sell its resources to other nations.
"We urge all parties to support dialogue and diplomacy in order to secure regional stability and prevent escalation," Mr Albanese said in a statement on Sunday.
"Australia has long held concerns about the situation in Venezuela, including the need to respect democratic principles, human rights and fundamental freedoms.
"We continue to support international law and a peaceful, democratic transition in Venezuela that reflects the will of the Venezuelan people."
The federal government's advice website SmartTraveller on Sunday warned Australians not to travel to the Latin American country due to the unpredictable security situation.
At least seven blasts were heard in Caracas on Saturday night Australian time as low-flying US aircraft swept over the capital.
Venezuelan authorities have said some had been killed, but the scale of casualties remains unclear.
Australia does not have an embassy or consulate in Venezuela and those in the region who need assistance have been urged to contact the government's emergency consular assistance team.
Other leaders of western nations have taken a similarly cautious tone, though Mr Albanese's UK counterpart Keir Starmer explicitly branded Mr Maduro an "illegitimate president" and said the UK "shed no tears about the end of his regime".
The Venezuelan government in October announced it would close its Australian embassy in a "strategic re-assignation of resources" as tensions continued to escalate between the US and Mr Maduro's administration.
Mr Trump said the US was going to "run the country until such time as we can do a safe, proper and judicious transition", but gave no further detail on how this would happen.
Mr Maduro's government appears to be still in charge and all eyes are on his Vice President Delcy Rodriguez.
The US has previously accused Mr Maduro of running a narco-state and rigging the country's 2024 national election, claims the ousted president has denied.
