US Secretary of State Hillary Clinton arrived in Australia on Tuesday for annual strategic talks, with Prime Minister Julia Gillard describing the two countries as "good mates at every level".

On what could be her final visit Down Under in her current role, Clinton will be joined by US Defense Secretary Leon Panetta for the discussions with Australian counterparts Bob Carr and Stephen Smith on Wednesday.

They are expected to focus on regional security and greater US use of Australian facilities, particularly increased access to a key navy base south of Perth, as the Indian Ocean rim region grows in strategic importance.