Gulf nations, including the United Arab Emirates, Qatar, Kuwait and Saudi Arabia, have been bombarded with Iranian missiles and drones since the start of the latest war in the region at the end of February.
Prime Minister Anthony Albanese announced plans to send an E-7A Wedgetail aircraft and advanced medium-range air-to-air missiles to the region, saying they would help protect around 115,000 Australians still in the Middle East.
"We're not taking offensive action against Iran, and we've been clear that we are not deploying Australian troops on the ground in Iran," he told reporters in Canberra on Tuesday.
About 85 military personnel will be on board the Wedgetail plane, which will be deployed for an initial period of four weeks, Defence Minister Richard Marles said.
The aircraft is one of the world's most sophisticated spy planes, helping with surveillance, communications and early warning against attacks.
It has previously been deployed to Europe to help Ukrainian forces in their war against Russia.
The plane will leave Australia on Tuesday and is expected to be operational by the end of the week.
The missiles will be sent to the United Arab Emirates to defend against "unprovoked attacks", Mr Albanese said.
Pressed on Australia's long-term plan for its involvement in the Middle East, Mr Albanese insisted the government's contribution was purely defensive.
More than 2600 Australians had now returned home from the region on commercial flights, the prime minister said.
Foreign Minister Penny Wong said the overwhelming majority of Australian citizens who were travelling through the Middle East and became stuck when the war broke out had now returned home.
Two buses have been organised to help travellers stranded in Kuwait, where the airport has closed, and a similar plan is in place for Australians in Bahrain, Senator Wong said.