In a recorded audio-only message on her official website, the 53-year-old singer apologised for letting Australian fans down but said her children needed her more, reported Herald Sun.
"I have two scales I have to weigh in front of me, my job as a singer and entertainer and my job as a mother. At the end of the year I really feel I would be an irresponsible parent if I did not stop the tour and be home with them.
"My daughter's going to be leaving home soon - she's almost 16 years old. I feel really bad because I do not take your love and support for me for granted," she said.
Madonna flagged her intentions to tour Down Under back in January following intense lobbying from fans after she skipped Australia on her Sticky and Sweet tour in 2008.
She had planned to visit for two weeks at the end of her seven-month MDNA tour, which features her son Rocco dancing on stage and daughter Lourdes working in wardrobe.
The singer acknowledged she had "made a lot of fans angry" and asked them to forgive her, promising she would make it up to them.
"Know that when I come to Australia I will have made the wait worth your while and will put on the greatest show on earth," she said.
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