It follows a survey this year that revealed abuses, including shooting and sharing intimate images without permission, was happening on a "mass scale".
Communications Minister Mitch Fifield said he hoped the fines would be a deterrent.
"Civil penalties will make people stop and think before distributing intimate images without consent - whether that's an ex-partner of a victim seeking revenge, an acquaintance or complete stranger being malicious," he said.
Perpetrators could still face criminal prosecution, but victims can choose to instead report the offence to the government's eSafety Commissioner's office, with no police involvement.
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Individuals face fines of up to Austraian dollars 105,000. Content hosts like Facebook run the risk of penalties up to Australian dollars 525,000.
Generally, under the civil penalty regime the state must only prove "clear and convincing evidence" rather than the more cumbersome "burden of proof" in the criminal system.
"When someone has intimate images shared online without their consent their main concern is to ensure they are taken down as soon as possible and our legislation enables that," she said.
"Image-based abuse is often a method used to intimidate and harass women, it is a growing problem and we are taking strong action to let perpetrators know we will not tolerate it."
Australia is among world leaders in efforts to combat revenge porn and this year launched an online portal allowing victims to report cases where their photos have been shared on the internet without consent.
A government-funded national study of more than 4,200 people this year revealed one in five Australians have had intimate photographs taken without their consent, and then confronted threats to share them on social networks.
It found that men and women were equally likely to be targeted.