Foreign Minister Julie Bishop said in a statement from Baghdad that she had secured the necessary legal guarantees from the Iraqi government to go ahead with the deployment of the elite troops.
The Australian special forces arrived a month ago in the United Arab Emirates to participate in the multi-national coalition put together by the US to battle the Islamic State group.
At the same time, Australia also sent six F/A-18F Super Hornet jet fighters which are flying almost daily combat missions against Islamic State targets in northern Iraq.