A 10-month-old cancer patient was rushed to Mlebourne's Royal Children's Hospital on Friday after suffering complications from a contaminated platelet transfusion.
The child has brain damage caused by a bacterial infection and is in remission, Fairfax newspapers report.
An investigation has found more than 100 incidents of bacterially contaminated platelet transfusions affecting people since September 2004.
Victorian coroners are investigating two deaths involving contaminated blood but it is not known how many blood transfusions have made people seriously ill.
Australia screens only 5 per cent of donated platelets, a blood component given mainly to cancer and trauma patients to help with clotting.
Several Melbourne hematologists say the lack of universal screening is unacceptable for a blood supply system regarded as one of the world's safest.
"There's no excuse for this," said the director of hematology at St Vincent's Hospital, Professor Harshal Nandurkar.
"The government is not a scientist, nor is it a doctor -- (it) needs to listen to its expert groups."
A blood service recently wrote to federal Health Minister Tony Abbott seeking $1.2 million immediately and a further $6 million a year for universal platelet screening.
It wants Australia to follow the example of countries such as the US, Canada, Wales, Hong Kong, the Netherlands, Sweden and Slovenia.
The blood service also warned the minister of potential litigation if further mistakes were made.
