An Iranian actress has been sentenced to 90 lashes and a year's jail in Tehran for her role in an Australian-produced film that criticises Iran's hardline policies on the arts.

Marzieh Vafamehr appeared in 2009's My Tehran For Sale, which was shot in the Iranian capital and tells the story of a young actress whose stage work is banned by the authorities.

The feature premiered at the Adelaide Film Festival two years ago, but is banned in Iran.

The actress and another Iranian filmmaker were both arrested in July when black market copies of the film reportedly began circulating illegally.

Vafamehr has now been sentenced to a year in prison and 90 lashes of the cane.

An Iranian opposition website says her lawyer has already lodged an appeal.

Adelaide Film Festival director Katrina Sedgwick says she is shocked and distressed at what she believes is a harsh sentence.

However she admits the content of the movie is sensitive.

"There is always somewhat of a risk for filmmakers in that country when they're exploring ideas that are complex and even quite subtly political," she said.

"It certainly makes one very aware of the amazing freedom that we have and the rights that we have in Australia, and we can never take them for granted.

"It also reminds one of the amazing courage of artists around the world working in places where they do take risks."

The Australian Iranian Community says Vafamehr's imprisonment is a bid by Tehran to suppress freedom of expression.

Community chairman Siyamak Ghahreman says he was surprised to learn of the sentence, given the film was made legally.

"Sometimes they do that to stop other people or other filmmakers [making] movies about Iranian problems. So by doing this they probably prevent other people do this," he said.