Anthony Albanese has described Andrew Mountbatten-Windsor’s arrest as an “extraordinary fall from grace” but says the latest crisis facing the British royal family won’t prompt another referendum on Australia becoming a republic.

The former prince, the brother of King Charles III, was arrested overnight on suspicion of misconduct in public office.

He was taken to Aylsham police station in Norfolk for questioning about allegations he shared confidential material with the convicted child sex offender Jeffrey Epstein.

In his first comments about the arrest, Albanese told the Guardian’s Australian Politics podcast that Mountbatten-Windsor had lived a life of absolute privilege.

“These are very serious allegations, and because they will be, no doubt, the subject of court action, I’m limited in what I can say,” the prime minister said.

“But people will be following the detail here. This appears to be about [classified] documents, and whether they were inappropriately forwarded on to someone who wasn’t eligible. But, of course, there’s the bigger issue as well when it comes to Andrew Mountbatten-Windsor. No doubt, we will wait and see where this all goes.”

Despite his longstanding support for an Australian republic, Albanese said the government was not planning another referendum.

“I’m a republican but we had a referendum during the last term,” the Labor leader said. “Referendums are hard to pass in Australia.

“I have respect for King Charles, I must say, and for Queen Camilla. I have had a good relationship with him. He very much loves Australia. And his visit here, I must say, was a very positive one.

“But that doesn’t change the fact I think there should [eventually] be an Australian head of state.”

In October 2023, after the Indigenous voice to parliament failed, Albanese ruled out another referendum during his first term in office.

Albanese then scrapped the ministerial portfolio for a republic in July 2024.

Last September he shut the door on the prospect of another referendum while he was prime minister, noting: “We’re concentrating on cost of living.”

Albanese said on Friday that Mountbatten-Windsor had suffered “quite an extraordinary fall from grace … from someone who had such an esteemed position and was in a position really of absolute privilege.

“To see this decline and fall is extraordinary.”

Mountbatten-Windsor denies all the allegations against him.

Albanese said he was not aware of any ongoing investigation or inquiry in Australia related to the Epstein revelations.