Staff have arranged replacement accommodation for team members arriving over the next three days.
The village will house 18,000 athletes and officials over the Olympic Games, which start on 5 August.
Kitty Chiller, the head of Australia’s Olympic delegation, said, “Due to a variety of problems in the Village, including gas, electricity and plumbing, I have decided that no Australian team member will move into our allocated building.
“Problems include blocked toilets, leaking pipes, exposed wiring, darkened stairwells where no lighting has been installed and dirty floors in need of a massive clean.”
Rio Mayor Eduardo Paes has offered to put a jumping kangaroo outside the Village to make the Aussie team feel more at home.