Asked in Canberra on Tuesday whether he would rule out new taxes, Abbott replied: "Yes I can." He said the estimated cost is "significant" but manageable, Xinhua reported.
Abbott previously said the cost of sending military personnel and equipment to the Middle East would total roughly $220 million every six months. And the government has repeatedly warned Australia's mission in Iraq could stretch on for "many, many months."
His comments came as Australian Special Forces soldiers are in the UAE and awaiting orders to travel to the north of Iraq to advise, assist and train the local defence forces in the fight against the IS.
"Our forces are ready to go. We are finalising the legal documentation," Abbott told reporters in Canberra.