The decision followed an uproar over an invitation to Monika Jagaciak of Poland, who, at age 14, has been on the cover of Harper's Bazaar and in ads for Calvin Klein and Hermes, the French fashion company. Jagaciak was expected to be the fashion week headliner.
Under the new regulations, all models must be at least 16 and have an agent, The Australian reported.
London has already banned underage models, while France requires them to have licenses.
Jo Kellock, acting manager of the Australian Fashion Council, said using very young models can give adult women unrealistic views of how they should look.
"It's a child we are talking about here who is four years under the legal age of adulthood," she said. "She will be still beautiful in four years' time and we can still use her then."
Fashion Week begins at the end of April in Sydney.