There was public outrage after the pair subjected a 14-year-old rape victim to a quizzing about her sex life while being hooked up to a lie detector.
Radio station 2DayFM took The Kyle and Jackie O Show off the air after Sandilands said he would not be returning to work.
A spokesperson for Austereo issued a statement reading: "Kyle Sandiland's management has advised Austereo that he is unable to perform his duties on-air at this time. Further, following a great deal of consideration and having consulted Jackie O... Austereo has formed the view that it is in the interest of all parties for The Kyle and Jackie O Show to go into recess."
The breakfast show and the radio station are both under review following the incident.