Prime Minister Julia Gillard said more bodies may be pulled from the sea after a boat carrying suspected asylum seekers crashed into jagged rocks.
She said the boat may have been carrying more than the 70 passengers originally thought.
The BBC understands that forty-two people were rescued from the heavy surf after the boat broke apart.
”We do not know with any certainty how many people there were on the boat so we‘ve got to prepare ourselves for the likelihood that more bodies will be found and that there has been further loss of life than we know now with the numbers available to us,” said Ms Gillard.
Immigration Minister Chris Bowen said as many as 100 people may have been on board - some 30 more than originally believed.
The passengers of the flimsy wooden boat are believed to have been asylum seekers making their way to Australia via Indonesia.
The route of the vessel and the identity of who organised the journey are still unclear.
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