Breaking: Australian man and two children found dead in Bali in suspected murder-suicide

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 went to check in on the family after a call from the man's wife, who was 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.

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.