Australia's aviation authority has grounded all Boeing 737 MAX aircraft in the wake of a deadly crash in Ethiopia on Sunday which left 157 people dead.

The incident was the second fatal crash involving a 737 MAX aircraft and has prompted a number of flight authorities worldwide to impose restrictions, including China, Ethiopia and Indonesia, among others.

Australia's Civil Aviation Safety Authority (CASA) said on Tuesday night that all 737 MAX flights in and out of the country had been suspended in the interest of public safety.

"This is a temporary suspension while we wait for more information to review the safety risks of continued operations of the Boeing 737 MAX to and from Australia," CASA chief executive and director of aviation safety Shane Carmody said.

Currently only Fiji Airways is operating the Boeing 737 MAX aircraft into Australia.

"CASA regrets any inconvenience to passengers but believes it is important to always put safety first," Carmody said.