Israel President Isaac Herzog has strongly criticised Australia’s decision to recognise Palestine as a state, calling it a “reward for terror”. Prime Minister Netanyahu described it a “shameful” decision.

This comes after Prime Minister Anthony Albanese announced Australian will formally recognise Palestine at the 80th Session of the United Nations General Assembly in September.

This move marks a departure from Australia’s previous cautious approach and signals a more proactive role in the Middle East peace process.

“A two-state solution is humanity’s best hope to break the cycle of violence in the Middle East and to bring an end to the conflict, suffering and starvation in Gaza,” Albanese said.

Conversely, several Western allies such as France and Canada have welcomed Australia’s stance, seeing it as part of a broader push to revive stalled peace negotiations and exert pressure on Israel to engage with Palestinian demands.

Australian advocates argue that recognising Palestine is a vital acknowledgment of Palestinian rights and a long-overdue step toward ending decades of conflict. Protests and public support for a stronger Australian stance on Gaza and Palestinian statehood have influenced politicians toward this decision.

Opponents, however, caution that the move could make things even less stable in a situation that is already fragile, give extremist groups like Hamas more power, and hurt the reputation of the peaceful process. Sussan Ley, the Liberal party leader, stated that nothing Albanese said changes the fact that Australia is recognising Palestine as a state while there are still concerns over the Hammas.

“Despite his words today, the reality is Anthony Albanese has committed Australia to recognising Palestine while hostages remain in tunnels under Gaza and with Hamas still in control,” she said.

Some fear the recognition may damage Australia’s diplomatic ties with Israel, a key strategic partner in the region.