Breaking: Australian man and two children found dead in Bali in suspected murder-suicide - ABC News & Headlines – Australian Broadcasting Corporation

Badung Regency police said neighbours checked in on the family after a call from the man's wife. (Supplied: Indonesian police)

Indonesian police are investigating a suspected murder-suicide after the bodies of an Australian man and his two children were found in a home in Bali.

Police found the bodies of 56-year-old Damien John Shaw, along with his six-year-old son and four-year-old daughter, inside their bungalow at Kuta on Sunday morning.

In a statement, Badung Regency police said neighbours checked in on the family after a call from the man's wife, who had recently arrived in Jakarta.

Police said the man's wife called a neighbour after hearing her child cry while she was on the phone to Mr Shaw.

The 56-year-old man was found dead alongside his two children in Kuta, Bali.   (Supplied: Indonesian police)

She told the neighbour the call was disconnected and her husband became unreachable.

The neighbour contacted others and then, along with the community head, forced the door to the Kuta bungalow open, discovering the bodies of the children and Mr Shaw.

The three have been taken to a hospital in Denpasar, where police may conduct autopsies to confirm the cause of death.

A police report was lodged on Sunday, and investigations will continue.

Western Australian Premier Roger Cook described the news as a "horrific situation".

"We know there is a very confronting situation there," he said.

"This is a very sad situation; our hearts go out to everyone involved. We hope we can get to the bottom of what's gone on as soon as possible."

A spokesperson for the Department of Foreign Affairs and Trade (DFAT) said it was providing consular assistance to the family of the three Australians who died in Bali.

"We send our deepest condolences to the family at this difficult time," they said.

The DFAT spokesperson said due to privacy obligations they were "unable to provide further comment".