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Federal Sport Minister Sussan Ley said it was too early to consider Australia making another World Cup bid while corruption allegations cast a shadow over the sport's governing body.
Responding to the arrests of FIFA officials in Switzerland on Wednesday on corruption charges, Ms Ley said corruption had no place in sport.
"It is disappointing for all lovers of football to hear these allegations," she said in a statement.
Ms Ley said the details of Australia's unsuccessful bid for the 2022 World Cup were primarily a matter for Football Federation Australia, and questions about taxpayer expenditure could be asked through the Senate estimates process.
"Australia has shown this year that we are a world-class host of international sporting events such as the Asian Cup and Cricket World Cup," she said.
"However, I think it's inappropriate to be talking about putting more taxpayers' funds into a rebid when we have serious allegations about corruption unfolding."
Opposition sport spokesman Bernie Ripoll said Labor, which was in power at the time of Australia's bid, was "disgusted" at the arrests and the allegations of bribery.
"Expenditure of taxpayers funds has previously been scrutinised through Senate estimates," he said.
"Any allegations in relation to the Australian bid should be forwarded to the appropriate authorities for thorough investigation."
Greens leader Richard Di Natale repeated his call for an independent inquiry into the Australian bid.
"Australia spent over $40 million on our World Cup bid. Question marks have been raised about how that money was spent. This is taxpayer money," he told Fairfax radio.
"There are still questions about how some of that money was spent.
"I just think we should have an independent inquiry to look at how that $40 million was spent, to make sure we did all the right things and that money didn't end up in some of those officials' hands and paid for holidays to the Bahamas, fancy cars and all that sort of stuff.
"I think taxpayers would be appalled if that was the case."
