While the package totalled $110 million in support, including 70 military vehicles, equipment such as Hawkeis requested by Ukraine was not included.
Mr Albanese said the federal government was continuing to send equipment, with the Commonwealth having provided $790 million in military assistance since the invasion of Ukraine.
"It doesn't assist people you're trying to assist who are conducting a war to send them a piece of equipment that will not provide for the best assistance," he told ABC Radio.
Defence Minister Richard Marles said while the package did not offer Hawkeis, the equipment would make an impact on the ground in Ukraine.
"We do feel that there were issues around Hawkeis, which is hard to go into publicly," he told ABC Radio.
"We took the Ukrainians through what we believed were the issues there, and what we wanted to do was make sure that the equipment we were giving to Ukraine would make a difference for them on the battlefield."
Mr Marles said Australia was still one of the largest contributors of military aid to Ukraine outside of NATO.
"We've made it clear to Ukraine that we will be standing with them for as long as it takes," he said.
Ukraine's ambassador to Australia, Vasyl Myroshnychenko, said he was reassured by the commitment to continue supporting his nation, but hoped future assistance would include special military vehicles such as Hawkeis and Bushmasters.
"I remain optimistic that these items will be included in our forthcoming packages, especially Bushmasters, (which) have really demonstrated their efficiency in Ukraine," he told Sky News.
The ambassador said despite recent unrest in Russia, the conflict in Ukraine showed no signs of slowing down, and more military support from Australia was needed.
"(Russian President Vladimir) Putin is weak, so I think that's the beginning of the end of his regime, and that was just one of the first signs of it," Mr Myroshnychenko said.
Opposition Leader Peter Dutton warned Ukrainian citizens could be left "high and dry" if further military aid was not given.
"The Australian public has been very supportive of President (Volodymyr) Zelenskiy and his cause, and by sending Vietnam-era vehicles to Ukraine, it's not what they asked for," he told Seven's Sunrise program.
"They asked for particular vehicles, including the Hawkeis. They are the vehicles that should be sent because the Ukrainians know best what they need."
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