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Australian prime minister Anthony Albanese said his Israeli counterpart Benjamin Netanyahu was in "denial" about the unfolding humanitarian crisis in Gaza caused by his nearly two-year-long war on the Palestinian territory.
Mr Albanese’s criticism came a day after he announced Australia would recognise a Palestinian state at next month's UN General Assembly. Australia is the latest member of the G20 after France, the UK and Canada to declare it will recognise a Palestinian state if certain conditions are met.
The acknowledgement was “predicated on commitments Australia has received from the Palestinian Authority”, Mr Albanese said. Those commitments included no role for Hamas in a Palestinian government, demilitarisation of Gaza and the holding of elections, he said.
The Israeli leader last week approved a widely criticised plan to occupy Gaza City claiming that he had no choice but to "complete the job" and defeat Hamas.
Mr Albanese said Israel’s reluctance to listen to its allies contributed to Australia's decision to recognise a Palestinian state. “He again reiterated to me what he has said publicly as well which is to be in denial about the consequences that are occurring for innocent people," the prime minister told public broadcaster ABC, recounting a Thursday phone call with Mr Netanyahu.
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Australia’s decision to recognise a Palestinian state is conditional on “commitments received from the Palestinian Authority” that Hamas will have no role in any future state.
Mr Albanese argued on Monday that a two-state solution was the best hope to break the cycle of violence and end the suffering and starvation in Gaza.
Displaced Palestinians carry food parcels from trucks carrying humanitarian aid in Khan Yunis, southern Gaza, on 9 August 2025(AFP via Getty)
Mr Netanyahu, addressing a rare press conference, called Australia’s plan to recognise a Palestinian state "shameful" even before Mr Albanese had publicly announced it.
"To have European countries and Australia march into that rabbit hole, just like that, fall right into it and buy this canard is disappointing, and I think it's shameful," he said. "It is not going to change our position. Again, we will not commit national suicide to get a good op-ed for two minutes."
Mr Albanese previously seemed wary of dividing public opinion in the country, which has significant Jewish and Muslim minorities, by taking a firm position on the issue of recognising a Palestinian state.
But public mood shifted sharply after Israel said it planned to militarily occupy Gaza, prompting tens of thousands of demonstrators to march across Sydney's Harbour Bridge this month and call for sending humanitarian aid into the besieged Palestinian territory.
Israel’s ambassador to Australia on Monday criticised Canberra’s decision claiming that it undermined Israel’s security.
“By recognising a Palestinian state while Hamas continues to kill, kidnap and reject peace, Australia undermines Israel’s security, derails hostage negotiations, and hands a victory to those who oppose coexistence," Amir Maimon said in a statement.
New Zealand this week announced it was considering recognising a Palestinian state and prime minister Christopher Luxon’s cabinet would make a formal decision in September.
“New Zealand has been clear for some time that our recognition of a Palestinian state is a matter of when, not if," foreign minister Winston Peters said.
Nearly 150 of the 193 members of the UN have already recognised Palestinian statehood, most of them decades ago.
The US and other Western countries have held off, saying that Palestinian statehood should be part of a final agreement resolving the Middle East conflict.
Israel’s war and siege on Gaza has killed over 61,400 people thus far, left almost the entire the Palestinian territory in ruins, displaced most of its 2.2 million people and caused widespread starvation, according to the health ministry in the Hamas-run Strip and international aid groups.
Israel launched a ground and air assault on Gaza after some 1,200 people were killed and 251 abducted during a Hamas attack on southern Israel in October 2023.
Most of the hostages have since been freed under ceasefire or other deals, but 50 remain in Gaza. Israel believes around 20 are still alive.