Australia's efforts to keep aid away from Myanmar's military are being hampered by worsening violence and ongoing civil disobedience in response to the coup.
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The federal government announced earlier in the month funding would be would be redirected to the most vulnerable and poor people in Myanmar, including persecuted minorities.
The Department of Foreign Affairs and Trade's Ridwaan Jadwat said the money would be sent to trusted non-governmental organisations and multilateral partners.
"What we're trying to do is make sure no money ends up in the hands of the military," he told a Senate estimates hearing in Canberra on Thursday.
More than 250 people have been killed and 23,000 jailed across Myanmar after the military seized power in a coup last month.
"The situation remains highly volatile. Protesters are continuing to face an increasingly violent response by the military," Mr Jadwat said.
The head of DFAT's Southeast Asia division said civil disobedience had severely affected banking, railways and ports, making aid redirection difficult.
"It's an ongoing process and the situation remains volatile. It will obviously have a negative impact on how we are able to do our work on the ground," Mr Jadwat said.
Foreign Minister Marise Payne said there was no clear path on how nations in the region could address the coup.
"The level of community unrest, the range of protest activity ... is making work on the ground very difficult," she said
Opposition foreign affairs spokeswoman Penny Wong asked officials why Australia did not join a statement from the US, European Union, UK and others issued last week.
Ambassadors from 11 countries called for an end to the "immoral and indefensible" violence against people in Myanmar.
"We are talking about a coup. We are a talking about unarmed civilians being murdered. We are talking about an escalation of violence," Senator Wong said.
DFAT secretary Frances Adamson admitted it was wrong to leave the decision up to Australia's ambassador.
"We should have consulted the foreign minister - that is a failing on our part," she said.
"It doesn't detract from the fact we absolutely support the content. We've made that clear on a number of occasions.
"It was not a deliberate, considered - including by the minister - statement that you might be expecting it would have been and it should have been."
Senator Payne confirmed Australia would have likely joined the statement if she had been consulted.
Australian Associated Press
