In May–June 2017 an expedition on board RV ‘Investigator’ sampled benthic communities along the lower slope and abyss of eastern Australia from off Tasmania to the Coral Sea. Over 200 sabellariid specimens of the genera Phalacrostemma and Gesaia were collected during the voyage and deposited in the Australian Museum. Here we describe two new species Gesaia csiro n. sp. (4414–4436 m) and Phalacrostemma timoharai n. sp. (1013–1093 m). We did not formally describe another species of Phalacrostemma due to poor condition of the single specimen. Gesaia csiro n. sp. is the first record of the genus from Australian waters (only a planktonic larva attributed to the genus has previously been recorded), and it can be distinguished from other congeners by the smooth surface of inner paleae, distal thecae of outer paleae with long, irregular and expanded distal fringe and circled distal margin. Phalacrostemma timoharai n. sp. differs from congeners by the following combination of characters: presence of the buccal flap, absence of tentacular filament, 18–22 pairs of outer paleae, two pairs of neuropodial cirri on first thoracic segment, and only one pair of lateral lobes on second thoracic segment. Morphological descriptions are accompanied by mitochondrial cytochrome c oxidase subunit 1 (COI) and ribosomal (16S, 18S and 28S) sequence data. A key to all Australian species of sabellariids is given.