The federal government is closely monitoring Russia's "diplomatic profile" in Australia and is carefully scrutinising visas, amid concerns about the scope of the Kremlin's intelligence operations here.
In a statement to the ABC, a spokesperson for Foreign Minister Penny Wong stressed "all options remain under consideration".
"While our preference is to maintain diplomatic channels, diplomatic profiles must always be consistent with our national interest," the spokesperson said.
"The Australian government is looking hard at Russia's diplomatic profile in Australia."
For some time, Australian agencies have been concerned the activities of some Russians have not been in our national interest.
There are fears some individuals have been helping wage a propaganda war for the Kremlin and sowing division among local Russian speakers, amid the invasion of Ukraine.
Some in the intelligence community have been urging the government to quietly "weed out" those people to ensure Russian diplomats in Australia are doing genuine diplomatic work, not just the bidding of the Kremlin's spy agencies, which are key backers of President Vladimir Putin.
Visa applications being carefully scrutinised
The ABC has been told one way to achieve this quietly and without the diplomatic drama of a formal expulsion is via the allocation and extension of visas.
Those people who are suspected of activity that is not consistent with the diplomatic positions they purport to hold could be denied extensions and forced to leave the country.
The comments from Senator Wong's office are the Albanese government's strongest on Russia's presence in Australia since taking office.
The opposition's foreign affairs spokesman, senator Simon Birmingham, has been briefed on the government's approach, something that normally occurs when an issue is considered important enough to be elevated above normal day-to-day politics.
The ABC has been told visa applications are being closely scrutinised and applications will be refused, if appropriate.
The government and the Russian embassy in Canberra both declined to say whether any visas had already been cancelled or extensions declined.
"You surely know that details on the posting of diplomat missions' staff normally are not disclosed to the media," a spokesperson for the Russian embassy said.
"We appreciate your understanding".
The comments from the government come as relations with Moscow become even more strained.
On Friday, the Australian Federal Police said the massive hack on health insurer Medibank could be traced to criminals in Russia, comments that also annoyed the local embassy.
Foreign minister quizzed in awkward Senate hearing
Russia's presence in Australia was raised by the Coalition in Senate estimates on Thursday evening.
Seven months ago, just days before the May election was called, the then-Labor opposition issued a press release urging Scott Morrison's government to expel Russians and some of their support staff as punishment for atrocities in the Ukrainian city of Bucha.
The Coalition was annoyed by the remarks at the time, regarding them as pre-election posturing on national security from Anthony Albanese.
Liberal senator James Paterson raised the topic of expulsions with the foreign minister and department during the estimates hearing.
Senator Wong took the questions "on notice" but appeared frustrated by them and swiftly suggested he speak to his more senior colleague, Senator Birmingham.
Afterwards, Senator Birmingham and Senator Paterson declined to elaborate on the details of the briefings they had received.
Tit-for-tat visa restrictions?
The questions in estimates were partly triggered by an ABC story, which revealed Australia currently has just one person with formal diplomatic credentials in Moscow — the ambassador, Graeme Meehan.
He is working from his home instead of the embassy, which has not been used for some time.
Before the pandemic, Australia regularly had five or six fully accredited diplomats.
But the ABC has been told there had been some problems securing visas, a challenge our trans-Tasman colleagues in New Zealand seem to have found easier to overcome.
New Zealand has not been as outspoken as Australia about some of Russia's recent actions.
If Australia is to expel diplomats, there is a strong possibility the country could lose its presence in Moscow entirely, something the Department of Foreign Affairs does not want to happen.
Australia's knowledge of Russia has declined
A number of specialists say knowledge of Russia in Australia has declined in recent years, as security agencies and diplomats turn more attention to China.
They argue this has meant the nation has not taken the threat and capabilities of the Kremlin seriously enough.
Russia is thought to respect professional behind-the-scenes diplomacy that is clearly in Australia's national interest, but not bold public declarations of values, posturing or chest beating.
Although Australia's focus on Russia has waned, Moscow has always taken an interest in Australia due to its military capabilities and close ties with the United States.
This interest has only grown since the signing of the AUKUS agreement and the decision to acquire nuclear submarine technology.
Russia uses a variety of tools to try to undermine Western nations it perceives to be unfriendly, including condoning the existence of criminal gangs which launch cyber attacks from its territory, like the hack on Medibank.
"The nation where these attacks are coming from should also be held accountable for the disgusting attacks that the release of very private and personal information", Prime Minister Anthony Albanese said on Friday.
In September, the Australian parliament was left red-faced after it was revealed that senators holding an inquiry had been pranked by pro-Putin comedians, who are claimed to have some links with Russian intelligence.
The propagandists questioned which way the water flowed down the drain in Australia, claimed Russian oligarchs were smuggling native animals including platypuses, mentioned sexual assault allegations and masturbation in the federal parliament, then produced sock puppets and brandished a toy fish before being cut off.
Analysts said it was a clear attempt to undermine public faith in Australia's political processes.
MH17 murder trial verdict next week
Relations between Australia and Russia have steadily worsened since the downing of Malaysia Airlines flight MH17 over Ukraine in 2014.
It is often described as an open wound in the bilateral relationship.
The Dutch court handling the murder trial of four suspects — three Russians and one Ukrainian — will deliver its verdict next week.
The suspects are being tried in absentia and Moscow continues to deny any responsibility.
It is unclear what the diplomatic reaction to the verdict will be.
However, some family members of the 38 Australians who were killed would like additional action taken.
The Ukrainian ambassador and members of the Ukrainian community in Australia have been calling on the government to expel the Russian ambassador – or at least some of his junior diplomats — for several months.
