Smith said Turkey should recognise Iraq's sovereignty and that its soldiers in Iraq should leave.

"Irrespective of the number of troops, the Turks should respect Iraq's sovereignty and they should retreat back over the border as soon as possible," he told the Nine network.

Turkish troops cracked down on Kurdish rebels in neighbouring Iraq as part of a major ground offensive Saturday as Ankara said dozens of rebels and at least five soldiers had been killed.

Australia has about 1,550 military personnel in and around Iraq but plans to withdraw combat troops from the country by mid-year.