Two Australians have died with A/ H1N1 flu, following the death in hospital of a 35-year-old man from western Victoria on Tuesday, Xinhua reported.
The Colac man, who had a range of significant underlying medical problems, is believed to have died from respiratory failure.
Australian Federal Health Minister Nicola Roxon said the man's death was a reminder A/H1N1 flu could present severe consequences for some people, including those who have respiratory diseases, pregnant women and the morbidly obese.
"I would also like to take the opportunity to remind people that for the vast majority this infection remains mild and most people will make a rapid and full recovery with no medical intervention," she told parliament.
"Unfortunately, as this disease continues to spread through the community, it is inevitable that we will experience more cases with severe outcomes, potentially also resulting in death," she said.
Victoria is now operating in the new "protect" phase as part of the ongoing response to the virus, which focuses on people from high risk groups with flu-like symptoms.
A West Australian man was the first Australian with A/H1N1 flu to die last Friday.