The four huge underwater volcanoes were spotted through sonar mapping of the sea floor by Australia's new ocean-going research vessel Investigator last month during a search for the nursery grounds of larval lobsters.
"The voyage was enormously successful, not only did we discover a cluster of volcanoes on Sydney's doorstep, we were amazed to find that an eddy off Sydney was a hotspot for lobster larvae at a time of the year when we were not expecting them," chief scientist for the voyage Iain Suthers said.
Australian National University's Richard Arculus, who is a world-leading expert on volcanoes, said these types of volcanoes are windows into the seafloor.
"They tell us part of the story of how New Zealand and Australia separated around 40 to 80 million years ago," he said, adding that "They'll now help scientists target future exploration of the sea floor to unlock the secrets of the Earth's crust."