Yesterday, North Korea announced that it had tested a missile that was capable of hitting "anywhere in the world".

That's an exaggeration, but the United States has nevertheless concluded that the test did involve a intercontinental ballistic missile (ICBM). Here's what that could mean for Australia.

Northern and central Australia could be within striking distance

An ICBM is defined as having a minimum range of 5,500 kilometres.

The North Korean missile's actual range could be far greater than that. The US-based Union of Concerned Scientists said it could have a maximum range of 6,700km, but the director of the Lowy Institute's International Security Program says that's a "conservative estimate".

Euan Graham says the South Korean news agency Yonhap, which gets its information from their government, was talking about the missile as having an 8,000km range.

"If that's the case, it wouldn't just be northern Australia [within range], it would also be well into central Australia," he said.

From America's point of view, that would also put Hawaii within striking distance.

The threat against Australia might be low, but it's real

Dr Graham says he thinks the threat against Australia is low.

"But that's not to say it's negligible, that's not to say that defence planners don't need to take it into account," he said.

There's two reasons for that: not only does it look like North Korea could potentially get a missile within range of Australian cities and possibly even the joint Australian-US military facility at Pine Gap, but there's already an official threat.

Earlier this year, North Korea warned that Australia could be the target of a strike due to its alliance with America.

But Andrew Davies, a senior military capability analyst at the Australian Strategic Policy Institute, says North Korea will have to think twice about striking Australia given America's nuclear security guarantee.

"They would have to assume that the US wouldn't honour its undertaking," he said.

Dr Davies agrees the risk of a strike on Australia is low, saying, "There's no sensible reason for North Korea to attack a US ally".

There's another problem: Australia doesn't have a missile defence system

South Korea and Japan both have missile defence systems, but Australia does not.

"If we're looking at US allies that don't have missile defence capability, Australia is the standout," Dr Graham said.

That means North Korea may decide its missiles have a better chance of getting through in Australia.

"From an opportunity point of view, if North Korea has very few missiles available and it does come to an all-out scenario, then aiming at Australia you could say presents a sort of tactical opportunity," Dr Graham said.

The impact on Australia could go well beyond its missile vulnerability

If war breaks out on the Korean Peninsula, Dr Graham says there will be an obligation on Australia's part to send contributing forces.

"I'm not saying that war is likely, but the more this continues to escalate between the US and the North Koreans, the more prudent it becomes for Australia to look into its own potential involvement in conflict scenarios," he said.

Dr Graham says North Korea's test of an ICBM will resonate in America because it will be seen as a direct threat to the homeland.

"That will escalate it up the US agenda," he said.

This isn't North Korea's last test

Dr Graham doesn't call this latest test a "game changer". Instead, he thinks it's "another rung on the ladder" for North Korea's weapons program.

Nevertheless, he says North Korea's missile capabilities are developing quickly.

"The development and success rate of its missile program has increased exponentially under Kim Jong-un," he said.

"This year alone, since February, North Korea has tested successfully a different type of missile in all four range categories: short range, medium range, intermediate range and now intercontinental."