It is the first time a Burmese head of state has visited since 1974.
Mr Thein Sein will be officially welcomed by the Governor-General Quentin Bryce at a ceremony on Monday.
He will meet Australian Prime Minister Julia Gillard and business leaders during his landmark trip.
Ms Gillard says the visit coincides with a period of far-reaching change in Burma, including political reform and social development.
"President Thein Sein's visit is an important opportunity to forge closer ties, including cooperation to support political reform, social development and trade and investment in [Burma]," Ms Gillard's office said in a statement.
Ms Gillard met with Mr Thein Sein in November on the sidelines of the Asia-Europe summit in the Laotian capital Vientiane.
It was the first meeting between the leaders of Australia and Burma in nearly 30 years.