World champion Sebastian Vettel backed up his strong performance in the first practice session in Melbourne by finishing quickest again in the second.
The Red Bull driver led the field with a time 1:25.908, which was slightly faster than the time recorded by teammate Mark Webber, who finished in second.
Mercedes's Nico Rosberg finished in third place, while Lewis Hamilton placed in seventh. However, both drivers spun off the track during practice.
The Lotus Renault duo of Kimi Raikkonen and Romain Grosjean finished fourth and fifth respectively while Ferrari's Fernando Alonso and Felipe Massa finished either side of Hamilton in sixth and eight place.
Nico Hulkenburg and Adrian Sutil completed the top 10 while McLaren's Jenson Button finished in 11th place.