Prime Minister Anthony Albanese to recognise Palestine within days after Benjamin Netanyahu blasts Australia
The government has consistently flagged that the announcement was a matter of 'when not if', with Cabinet set to meet on Monday to formalise the decision, according to the Sydney Morning Herald.
The announcement could come on Monday or later in the week.
In an exclusive interview with Sky News shortly after the news broke, shadow energy minister Dan Tehan said the Prime Minister needed to 'clearly articulate' the role his government saw for Hamas.
'And what are they doing to make sure Hamas will have no role in governing a future Palestinian state,' Mr Tehan said.
'Everything seems to be about recognising a Palestinian state, they seem to have forgotten that an internationally listed terrorist organisation is governing parts of Gaza and what are they going to do to stop that.
'How is that helping the people of Gaza … it might have all the best intentions in the world, but all it's leaning to is Hamas withdrawing from peace negotiations and leaving the Palestinians in an even more precarious state.'
It comes hours after Israeli Prime Minister Benjamin Netanyahu called Australia's imminent recognition of Palestine 'shameful'.
Speaking to reporters overnight, Mr Netanyahu was asked about Western countries such France, Canada and the United Kingdom's intentions to recognise Palestinian statehood and Israel's right to self defence.
'Well first of all, those who say Israel has a right to defend itself are also saying 'but don't exercise that right. When we do what any country would do faced with this genocidal terrorist organisation that has performed the worst attack on Jews since the Holocaust, I think we're actually applying force judiciously, and they know it,' Mr Netanyahu said.
'They know what they would do if right next to Melbourne, or right next to Sydney, you had this horrific attack. I think you would do at least what we're doing. Probably, maybe not as efficiently and as precisely as we're doing it.'
Home Affairs Minister Tony Burke has also said recognition could come despite Hamas controlling portions of the Gaza Strip.
'There have frequently been countries where part of that nation has been occupied by a terrorist group and we haven't ceased to recognise the country,' Mr Burke told Sky News Australia's Political Editor Andrew Clennell on Sunday.
'Both Syria and Iraq had long periods where parts of those countries were being occupied and controlled by ISIS, it didn't stop us from recognising and having diplomatic relations with those countries themselves.
'There is a fair amount of precedent with this.'
Pressed about Mr Netanyahu slamming of the Albanese government on the issue overnight, Assistant Foreign Minister Matt Thistlewaite claimed "Australia is a supporter of the nation of Israel".
"We certainly recognise Israel's right to exist, but we also want peace. And I think that the world has been shocked by the images of children starving to death and that they've had enough and that they see that the actions of the Netanyahu government have contributed to that, and we want to see an end to that," Mr Thistlethwaite told Sky News.
"Obviously we want to have a good relationship with the Israeli government but we're going to stand up for the values upon which Australian society is based and those are fairness and ensuring that people are fed and that children can live their lives.
"We believe that that's moving in the opposite direction of the way the world wants the Israeli government to move towards peace and the release of hostages.'
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