According to the German car maker, a fault with the airbag gas generator, the mechanism that inflates the airbag during an accident, may eject small metal parts when the airbag is deployed.
Should components of the gas generator become dislodged, the metal parts may pose a hazard to the driver or passengers.
The company says it has received no reports of an incident resulting from the defect. The company has also confirmed that although the issue sounds similar, this recall is not related to the global Takata airbag controversy.
Audi Australia will begin contacting owners of affected vehicles next week.