The AOC has originally committed to sending a team of approximately 535 athletes to next year's Summer Games although this figure could now be subject to reduction.
The governing body cut A$2.2million from its budget at the turn of the year following a decline in sponsorship investment.
Australian Sports Commission chief executive Mark Peters commented: "From the Sports Commission's point of view, it's the dilemma of supporting sport both at the elite end and the grass-roots level.
"There's no simple answer other than money - we just have to continue talking to corporates. But we have a query whether a full team for Athens is achieveable. We're a bit worried with what happens in the next six months in regard to qualification."
Cutbacks in the budget of the Australian Olympic Committee (AOC) has led the governing body to question its ability to send out a full team to the 2004 Athens Olympics.
