I'm travelling from Australia to Sri lanka and have two short stop overs in Kuala Lumpur, Malaysia and Chennai,India. I need to check-in and also claim and check my luggage in at each stop-over. I do not intend to leave the airport as I am there for such a short amount of time. I am unsure whether I need a transit visa as I cannot find any conclusive information.
You are not technically in transit since you have to cross immigration, collect your bags, and then check in and board your next flight.
For the purposes of visas, this is not considered transit but rather a point-to-point journey. Your requirements would be the same if you were staying for 1 hour or 10 days since you are crossing immigration.
As an Australian citizen, you are entitled to visa-free access to Malaysia for 90 days.
Here is the exact text from Timatic, the database airlines use to confirm visa requirements.
Destination - Malaysia (MY)
Passport Passport required.
Nationals of Australia with an emergency passport.
Passports and other documents accepted for entry must be valid for a minimum of 6 months from the arrival date.
Admission and Transit Restrictions:
Visitors must hold return/onward tickets.
Minors up to and including 15 years of age may be listed in an accompanying adult's passport.
Passengers with an APEC Business Travel Card must travel with a passport. The passport number and nationality must match those stated on the card.
Passports and passport replacing documents of all non-Malaysian nationals must contain at least 1 unused page for entry/departure endorsements by Malaysian Immigration Service. This does not include the page reserved for "Observations" or "Amendments and Endorsements".
Visa Exemptions: Nationals of Australia for a maximum stay of 90 days. Passengers with an APEC Business Travel Card valid for travel to "MYS" . The card is valid for the countries listed on the back of the card.
Additional Information: Visitors are required to hold proof of sufficient funds of at least USD 100.- per day to cover their stay.
Students attending a University or College in Malaysia can obtain their visa once they are in Malaysia to cover the study period. It is required to hold all documentation confirming placement and those attending private Universities or Colleges must be met by a representative.
For India, you will need a visa in advance.
E-visas can be obtained before departure at https://indianvisaonline.gov.in/. Passengers using their e-visa for the first time must have a passport with at least 2 unused visa pages and a printed confirmation of the Electronic Travel Authorization (ETA). On their first entry with the ETA, the Immigration officer stamps the e-visa in the passport with the expiry date of the visa and the number of entries allowed. Once the e-visa is expired or the authorized number of entries have been used, a new ETA must be obtained for a new e-visa.