Health Minister Greg Hunt says he respects the right of states to make their own laws on voluntary euthanasia.
But territories will not be able to follow suit, even if more states push ahead with assisted dying schemes, his office has confirmed.
Western Australia is on track to become the second state to legalise voluntary euthanasia, although the bill faces an uphill battle in the upper house.
Western Australian Labor Senator Pat Dodson and Minister for Indigenous Australians Ken Wyatt are opposed to the legislation.
Asked his opinion on the ABC's Radio National on Thursday morning, Mr Hunt said: "I'll let WA proceed with its own processes".
"I've said previously and on many occasions I don't support it but I respect the fact that it is a matter to be determined at each individual state level," Mr Hunt said.
But that respect does not extend to the territories, which are prevented from making laws on euthanasia through the so-called Andrews Bill.
The block was put in place when the federal parliament moved to overturn the Northern Territory's landmark legalisation of voluntary assisted dying in 1995.
A push to revoke the bill was narrowly defeated in the Senate last year.
Asked whether he would revisit the restrictions, Mr Hunt said he personally did not support euthanasia.
"I don't believe it's a desirable pathway for the simple reason that it has the risk of sending a message that - again this is my personal view but it's also the view of the World Health Organisation and the AMA - of sending a message that older Australians might be less valued and we need to be focusing on palliative care," Mr Hunt said.
A spokesman for Mr Hunt said the federal government had consistently stated it would not "facilitate nor thwart" the introduction of voluntary assisted dying schemes.
"Voluntary assisted dying is not the policy of the Australian government. This position has not changed," he said.
The spokesman also said the government had no plans to repeal Andrews Bill.
"The Australian government recognises many members of the community have strong views about dying with dignity, compassion and minimal pain," he said.
"The underlying principle of the Australian government's investment in health services is quality of life, and this includes during end of life care.
"The Australian government believes people should have access to quality palliative care and relief from pain and suffering, and where possible, people should be able to choose the extent of active medical treatment they receive."
It comes as the federal government ups pressure on the ACT government, after it passed a bill to legalise cannabis for personal use last month. Mr Hunt described the legalisation as "dangerous and medically irresponsible", opening the door to a potential intervention.