The small 10-cent sized batteries, which are used to power everything from toys to household kitchen appliances, have become the focus of a safety campaign led by consumer advocate group Choice.
The group is urging the federal government to introduce laws making it mandatory for the batteries to be fixed inside secure compartments within products which require them.
Two children have died after ingesting the batteries since 2013 and around 20 people are hospitalised each week.
"What we don't want at the moment is to see anymore deaths."
Choice spokesman Tom Godfrey told SBS introducing new laws was "extremely vital".
"These batteries are becoming a real problem in Australian households," Mr Godfrey said.
"We currently have laws that require them to be fixed in place in toys that sold to children under three. We would like to see those laws extended to all products that contain button batteries."
A Choice stated that if ingested, a chemical leak from the battery can cause "catastrophic damage".
They illustrated the harm a battery can do when inserted into a sausage:
Mr Godfrey said the death of four-year-old Summer Steer after ingesting a button battery in 2013 highlighted the need for these laws.
Despite investigations it the girl's death, it was never clear where the battery she swallowed had come from.
"The fact is button batteries are powerful, slim, light and they can also be lethal," Mr Godfrey said.
"What we don't want at the moment is to see anymore deaths like we saw in 2013.
"The batteries cause chemical burns if stuck in body tissue and these can be fatal. It doesn't take a long time."
The Choice report also highlighted that the the batteries are the perfect size to lodge in a windpipe, and they continue to be dangerous even when flat.
Kidsafe Queensland CEO Susan Teerds said the proliferation of products containing button batteries is alarming.
"They are everywhere now," she said in a statement.
"Even if you don't think you have any in your home there's a good chance you're mistaken."
