It could also be accompanied by a submarine with nuclear energy, but the government cannot be sure.
The flotilla is located about 500 km west of Hobart on the border of the exclusive economic zone of Australia.
Defense Minister Richard Marles said the government does not know if the task group includes a submarine.
“We do not know if there is the presence of a submarine, and that, in part, speaks of the nature of the submarines,” he told ABC Radio on Thursday.
“So, we cannot answer that question definitely, so it is precisely why it is important that Australia has a long -range submarine capacity.”
Marles said the government is closely observing the task group.
“What we are doing is an unprecedented level of surveillance in relation to this particular Chinese mission,” he said.
“Much more than we saw under the old government.”
Australian military officers confirmed that Chinese ships participated in alive fire drills last week near the exclusive economic zone.
The exclusive economic zone is a maritime area that extends from 22 to 370 km from the Australian coast, on which Australia has jurisdiction and sovereign rights.
Live fire exercise follows a where a combat plane fired flares in front of a surveillance plane of the Royal Australian Air Force over the southern China Sea.