The men's clothes, keys, and wallets were found on Shelly Beach near Port Macquarie, in New South Wales, on Monday morning, according to local news reports.
Police also found their travel documents in a silver rental car parked nearby.
A water and ground search is now underway.
Police Inspector Michael Aldridge warned the surf had been rough on Sunday, when the pair reportedly arrived in the beach town, almost 400 miles northeast of Sydney, where they had been camping.
"Chances are exceptionally slim (someone could have survived in the water since Sunday) ... the conditions yesterday and the day before were terrible," he told the Port Macquarie News.
"The concern is that a number of personal items were located in the vehicle (that) we would believe they wouldn't leave," he added.
Police named the two men as Hugo Palmer from the UK and his French companion Erwan Ferrieux.
Palmer was described as having a Caucasian appearance, fair haired and 180 cm (6 ft) tall with an athletic build. Ferrieux has dark hair, brown eyes, a tanned complexion and is between 175 cm and 180 cm, according to the report.
Police are appealing to anyone who may have seen the two travelers, or their car, around the area.
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