Chiller said the incident was the latest in a string of muggings of athletes in Brazil.
"This is not an isolated incident, athletes have been mugged while training or competing in Rio test events and we want our athletes protected.
"I am sure the Australian Paralympic Committee shares our view, following this latest incident".
The security force will remain in place for the Paralympics which begin on September 7.
Chiller said athletes heading to the games had been advised to comply with criminals and hand over their belongings, if confronted.
"There have been several shooting incidents in the past couple of weeks," she said.
"This is disturbing.
"We have a duty of care to the athletes and officials.
"We are taking over 400 young athletes to the Games, we need to ensure they are protected at all costs.
"Maybe the Organising Committee should mobilise their Games time defence force early. Do it now.
"The local mayor was very upset with me when we announced that the favelas were off limits to members of our Team a couple of months ago.
"This was not a slur on his city, which is a beautiful and vibrant city. It is a simple security precaution.
"There are over 200 favelas in Rio and we cannot possibly keep track of our athletes if we set them loose in those areas.
"There is a high crime rate in some of the favelas, some remain very dangerous and we are not prepared to take that risk. They will remain a no go zone.
"It is obvious there is also a very high security risk along the beachfront in Rio as well".
Tesch was on a fitness ride with her physiotherapist when two men jumped in front of them and demanded money.
"I think he said dinero ... which means money, so I lifted up my shirt and said: 'Look, I don't have any money'," Tesch said.
"He then said something else and pointed the gun at me and pushed me in the shoulder and I just toppled over with my bicycle and he just grabbed my bicycle, and the other guy was wrestling the bicycle from our team physio.
"And they just rode off into the park. It was absolutely horrific, I can see it clear as day in my own head ... it was a pistol."
The 100,000 personnel will be made up of 47,000 Brazilian security professionals; 38,000 members of the armed forces; 10,000 officers from the National Police Force and 5,000 Federal police officers from other parts of Brazil.