The prevalence of Type 1 diabetes in Australian children is high by international standards, and is expected to keep rising, a government report says.

The report, released today by the Australian Institute of Health and Welfare (AIHW), estimated that in the next couple of years, 153 in every 100,000 children under 14 will be diagnosed with the condition.

"(This is) up by around 10 per cent from the rate in 2008 of 138 children per 100,000," said Anne-Marie Waters, from the AIHW's Cardiovascular, Diabetes and Kidney Unit.

"This means that by 2013, over 6400 children in Australia could have Type 1 diabetes compared with an estimated 5700 in 2008," Ms Waters said.

Out of the 34 nations collecting Type 1 diabetes data, Australia had the seventh highest prevalence of the condition among kids, the AIHW found.

Type 1 diabetes occurs when the body can't produce enough insulin, and while it can occur at any age, tends to arise in children and young adults.

The report, Prevalence of Type 1 diabetes in Australian Children, 2008, is based on information from Australia's National Diabetes Register.

The register covers people who began using insulin for diabetes since 1999.

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