Australia's Olympians basked in the glory of their Beijing achievements after touching down in Sydney on Tuesday, but their sights are already set on the London 2012 campaign.

Draped in gold, silver and bronze medals, the Olympic team received a heroes' welcome of fanfare and cheers, greeted by Prime Minister Kevin Rudd and hundreds of family and friends.

Most of the 435 Olympians, who won 46 medals between them, including 14 gold, arrived home on Tuesday after finishing sixth in the medal tally and winning a podium position in 14 sports.

Tired but elated, triple gold medallist Stephanie Rice led her team-mates from the top of the stairs of their chartered Qantas 747 and onto home soil, greeted first by Mr Rudd and cheered on by well-wishers waving flags and mascots inside a massive hangar at Sydney airport.

Oarsman and opening ceremony flag-bearer James Tomkins, returning from his sixth Olympics, said the team was "pumped" to be back in Australia.

"The support that we got from Australia was incredible, the messages of support to all the athletes was unbelievable," he said.

"Then to come back here and realise the enormity of the achievement of the team was absolutely phenomenal."

He congratulated his fellow Olympians, wishing them luck and joining with Mr Rudd in urging those who were not retiring to look ahead to the 2012 Games.

"For those of us who may be going on to London, start preparing and as (Australian Olympic Committee boss) John (Coates) said and the prime minister, I think it's only appropriate we spoil the party (for the British) over in London."

Mr Rudd said the preparations for the 2012 London Olympics would begin today.

"Every man, woman and child in this nation Australia is proud of every one of you, well done," he told the athletes.

"To hear the roar of the crowd in China welcoming this great team for Australia says for me one thing - you are great ambassadors for Australia and the nation thanks you."

He also thanked the parents of Australian athletes for their support and said every part of the country was represented in the Australian team.

Mr Rudd later told the Nine network he would look at the merits of introducing a national sports lottery to raise more money for Australian sport.

Euphoria, exhaustion and relief were visible on the faces of the athletes as they milled around, sharing laughs, hugs and tears, and enjoying their reunions with loved ones.

They posed for photos with each other and with the prime minister.

Stephanie Rice, gold medal breaststroker Liesel Jones and pole vault gold medallist Steve Hooker were mobbed by their supporters and besieged with requests for autographs and photos.

"It's a dream come true for me," Hooker said as he signed an autograph for 10-year-old Justin Burt.

"I'm really looking forward to getting back to Melbourne to see my family and friends because I made a lot of sacrifices to train in Perth."

Justin said the autograph meant a lot to him.

"I just wanted to congratulate him for doing the best that he can do," he said.

Liesel Jones said she was extremely tired but thrilled to be back in Australia.

"Swimmers get up really early every day so it'll be really nice to stay in bed as long as I want," she told reporters.

Sailor Nathan Willmot said he had flown first class with his fellow gold medallists for the first time in his life.

"Everyone was taking photos of each other on the flight and it was really good fun," he said.

As equestrian silver medallist Megan Jones embraced her younger sister Emma Spencer-Gardener, tears of joy began to flow.

"I'm just so proud of you," Ms Spencer-Gardener told her sibling as she wiped away tears.

Later in Brisbane, about 200 family members and well-wishers welcomed Queensland Olympians returning from Beijing.

Seven of Australia's eight individual gold medals were won by Queenslanders, and 70 per cent of all Australia's individual medals - 19 out of 27 - have gone to the Sunshine State.

"It will be very nice just to look at the gold medal. I think that will make it feel real, seeing it at home," Olympic triathlete champion Emma Snowsill said.

A few hours later, Stephanie Rice scotched rumours of an Olympic romance with US swimming sensation Michael Phelps.

Appearing with another Aussie Olympic medallist, her former boyfriend Eamon Sullivan, at an underwear show, she denied reports she had shared a kiss with Phelps at a party in Beijing.

"No," she said adamantly.

For his part, Sullivan again denied reports he and Rice would be getting together again.

"We're still apart," he told reporters.