All foreign affairs staff and their dependents in the Iranian capital have been told to leave "based on advice about the deteriorating security environment".
The Department of Foreign Affairs and Trade is deploying consular staff to Azerbaijan, including its border crossings, to support Australians departing Iran.
"We urge Australians who are able to leave Iran to do so now, if it is safe," Foreign Minister Penny Wong said on Friday.
"Those who are unable to, or do not wish to leave, are advised to shelter in place.
"We are continuing planning to support Australians seeking to depart Iran, and we remain in close contact with other partner countries."
Overnight Mr Trump, who has kept the world guessing about whether the US might join the war on Israel's side, said he would make a decision within the next two weeks.
"Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks," press secretary Karoline Leavitt told reporters in Washington, quoting a message from the president.
The conflict between Israel and Iran erupted a week ago, when the former launched an attack against the Islamic republic's missile capabilities, claiming it was on the verge of developing nuclear weapons.
Israeli strikes on Iran have killed at least 639 people and wounded 1300 others, according to a Washington-based Iranian human rights group.
Israel says Iran's retaliatory strikes have killed at least 24 and wounded hundreds more.
Mr Trump has demanded that Iran unconditionally surrender, saying he knew where Supreme Leader Ayatollah Ali Khamenei was hiding.
Iran has warned of "all-out war" if the US joins the fray.
There are now more than 2000 Australians who have registered for assistance to leave Iran, up from 1500 on Thursday.
"It's a difficult, hard situation, the airspace is still closed," Health Minister Mark Butler told Seven's Sunrise program on Friday.
"We'll be exploring every opportunity we can to support people getting out in other ways."
The government has already helped Australians flee Israel using a border crossing to Jordan, and some of those people only got 55 minutes to get moving.
"When the opportunity arises to get people out, we take that opportunity," Mr Butler said.
There are still more than 1200 Australians registered for assistance to depart Israel, where the airspace is also closed.
with Reuters
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