Australia, who has earlier received just 1 FIFA vote inside the ballot to pick the host of the 2022 World Cup won by Qatar, has been urging reform of FIFA.
Arbib said all governments should feel twice about bidding for football World Cups until proper reform is achieved within FIFA.
"Knowing what we know, without having reform of the FIFA organization (and) reform of the bidding procedure, no government would need to put funds into any bidding process," he told ABC radio on Friday.
"FIFA should clean up their game and, until they do, no government should have confidence in their processes."
Senator Arbib stated FIFA need to take a lead from the International Olympic Committee (IOC) in cleaning up its tarnished image.
"The football associations of the world have elected him (Blatter) as their president," he said.
"He has publicly stated on the record last night (Thursday night) in his speech that he will reform the organization.
"Reform is needed. What FIFA requires is action that took place inside the IOC soon after Salt Lake City (2002 Winter Olympics) when the IOC cleaned up its game and that is precisely what FIFA now requires."
FIFA president Sepp Blatter, 75, was re-elected head of world football as the sole candidate by a landslide of votes at FIFA's 61st congress in Zurich of Switzerland.
The Swiss, who took the helm at FIFA in 1998, has faced widespread calls for reform following allegations of sleaze surrounding the bidding for the 2018 and 2022 World Cups, awarded to Russia and Qatar.
He has vowed to clean up the tarnished image of football's governing body right after months of explosive corruption allegations.
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