The regime of North Korean leader Kim Jong-un has warned Australia "will not be able to avoid a disaster" if it continues to support the United States in its "frenzied political and military provocations".
Exports of European oil will be stopped and a ban on EU investment in North Korea will be expanded.
The report published by KCNA over the weekend also specifically mentioned Australian foreign minister Julie Bishop and defence minister Marise Payne, who last week visited Seoul and pledged Australia's support for South Korea.
"Our nuclear programs are nuclear deterrence programs aimed at protecting our independence; we have no choice but to develop our nuclear programs", he said, according to Russian state news agency Tass.
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"But North Korea's threats only strengthen our resolve to find a peaceful solution to the rising tensions on the Korean peninsula caused entirely by North Korea's illegal, threatening and provocative behaviour". "We are determined to find a peaceful solution", she said.
"The Australian foreign minister personally expressed her support for the stand of the USA to consider all options including the use of force towards the DPRK, and turned up at Panmunjom on October 11 together with the Australian defence minister to condemn the DPRK during her visit to South Korea", it added.
In addition to successfully testing a hydrogen bomb, Kim made headlines in July for overseeing the launches of North Korea's first two intercontinental ballistic missiles (ICBM).
Australia's Veterans Affairs Minister Dan Tehan echoed Bishop's remarks in an interview with Sky News.
The allies sought to compel the rogue country back to the negotiating table over its nuclear weapons programs. The Minister added that Australia will continue to do everything to support its allies.