Bishop said she had settled the legal frameworks during meetings with Iraqi government leaders in Baghdad on Saturday and Sunday about a month after the special forces members were sent to the Middle East.
The 200 special forces members, as well as an additional 400 air force personnel, have been in the UAE since September in preparation for Australia's deployment approval.
Now, they will be sent to Iraq, where they will maintain a strictly advisory role alongside Iraqi troops in their fight against Islamic State (IS) militants.
"I received briefings from Iraqi leaders and international coalition partners on the campaign against IS and the current political situation," Bishop said in a statement on Monday.
"I emphasised the importance of the Iraqi government's efforts to deliver policies that share power and resources amongst Iraq's various communities."