'australite' originates from Modern English, formed by combining 'Australia' (from Latin 'australis', meaning 'southern') with the suffix '-ite' used to name minerals and rocks.

'australite' developed as a compound from 'Australia' + '-ite' in the late 19th to early 20th century; the form follows patterns used to name mineral specimens and was applied specifically to tektites found in Australia.

Initially the elements of the word related broadly to 'southern' or 'of Australia', but over time the term came to denote specifically the natural glass (tektite) objects found in Australia.