The Foreign Affairs Minister, Alexander Downer, says he has cautioned Hong Kong over following Beijing's lead on anti-sect laws.
There are concerns followers of Falun Gong who are living in Hong Kong will be persecuted as a result of planned anti-sect laws.
Mr Downer says he raised the issue with Hong Kong Chief Executive Tung Chee Hwa during a recent trip through Asia.
"It's certainly our view that Hong Kong has to continue to persevere with its reputation of freedom," he said.
"Any legislation which is even perceived to undermine that reputation will be damaging to Hong Kong and I made that position very clear to authorities in Hong Kong."