Australia won't impose tougher sanctions on Myanmar even as the situation deteriorates.
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More than 100 days have passed since the Myanmar coup and officials have told parliament's foreign affairs, defence and trade committee the situation remains bleak.
"Australia is gravely concerned about the deteriorating situation in Myanmar," Defence official David Lewis said on Thursday.
More than 800 people have died on the streets, including at least 50 children.
Senior foreign affairs official Lynda Worthaisong said Australia had strongly and repeatedly condemned the lethal use of force and violence against civilians, and had called on security forces to exercise restraint.
Australia has sanctions and travel bans on five members of the Myanmar military, while the United States, United Kingdom and European Union have imposed stronger sanctions on individuals and organisations.
An arms embargo is also in place.
Ms Worthaisong said additional sanctions by Australia at this time could potentially limit influence on the military leaders and humanitarian assistance.
"We consider as a country in this region that our interests are best served by having influence, direct influence," she said.
Australia's view is consistent with Japan, Korea and the Association of Southeast Asian Nations countries, who do not support sanctions.
"There would be very little, if any, positive impact for people on the ground," Ms Worthaisong said.
Officially, sanctions will always be a "live option" for the government.
Australia is also demanding the immediate release and evacuation of Australian Sean Turnell, the detained economic adviser to Myanmar's Aung San Suu Kyi.
Labor's Peter Khalil asked at what point the government was going to realise "back channels" don't work and Australia is giving legitimacy to the regime.
Ms Worthaisong said very real gains have been made in Professor Turnell's conditions by Australia's Yangon-based diplomats, including consular visits and phone calls to his wife.
Defence officials were also quizzed about $325,000 included in the federal budget for the defence cooperation program with Myanmar, since military-to-military cooperation was suspended in March.
"That's an error in the budget," Mr Lewis said.
"That number should read zero."
Home Affairs announced last week that more than 3400 Myanmar nationals in Australia on temporary visas, including students, could remain until it was safe to return.
"The department will support students in their stay in Australia," Home Affairs official Michael Willard told the committee.
But he couldn't guarantee no one would be forced to leave on character or conduct grounds.
David Wilden from Home Affairs said "some names" have come to the attention of federal police, including relatives of members of the junta.
Labor's Julian Hill questioned why no investigations were underway of up to 15 individuals, including the son of Myanmar attorney-general Thida Oo who he said was in Australia on a student visa.
Committee chair Dave Sharma noted sons of Libyan dictator Colonel Muammar Gaddafi were in Australia a decade or two ago, and there is ministerial discretion.
While Australian companies such as Woodside are scaling back activity in Myanmar, Russian and Chinese companies remain.
Foreign Affairs Minister Marise Payne has held extensive talks with counterparts and international organisations in London, Geneva and Washington.
Senator Payne has been at the forefront of international efforts to encourage ASEAN nations to resolve the crisis.
Australia is also very concerned Myanmar is ill-equipped to respond to health challenges, including COVID-19.
Australian Associated Press
