Australia to recognise Palestinian state in September
Albanese said Australia received commitments from the Palestinian Authority (PA) including to demilitarise, hold general elections and continue to recognise Israel's right to exist.
"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," he said on Monday.
Israel, under increasing pressure to end the war in Gaza, has said recognising a Palestinian state "rewards terrorism".
Since Saturday, five people have died as a result of starvation and malnutrition in Gaza, bringing the total number to 217 deaths, according to the Hamas-run health ministry.
It also said that in total more than 61,000 people have been killed as a result of Israel's military campaign since 2023.
Israel launched its offensive in response to the Hamas-led attack on 7 October that year, in which about 1,200 people were killed and 251 others were taken hostage.
The Palestinian Authority, which controls parts of the Israeli-occupied West Bank, earlier said recognition of statehood shows growing support for self-determination of its people.
Albanese said the decision was made after his government received commitments from Palestinian Authority President Mahmoud Abbas that Hamas would play no role in any future state.
The move also comes after conversations with his counterparts in the UK, France, New Zealand, and Japan over the past fortnight, Albanese said.
"There is a moment of opportunity here, and Australia will work with the international community to seize it," he told the media.
Last Sunday, a pro-Palestinian protest drew tens of thousands of supporters who walked across Sydney Harbour Bridge, a day after a court ruling allowed the demonstration to happen.
Bowen: UK move to recognise Palestinian state is a diplomatic crowbar to revive peace process
What does recognising a Palestinian state mean?
The US has stated it will not follow suit and believes that recognising Palestinian statehood would be rewarding Hamas.
Over the weekend, US Vice-President JD Vance reiterated the US had no plans to recognise a Palestinian state, citing a lack of functional government.
At a press conference on Sunday, Israeli Prime Minister Benjamin Netanyahu criticised countries planning to recognise Palestinian statehood.
"To have European countries and Australia march into that rabbit hole… it is disappointing - and I think it's actually shameful," he 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."
The Executive Council of Australian Jewry called Albanese's decision a "betrayal and abandonment of the Israeli hostages who continue to languish in appalling conditions in Gaza".
The announcement gives the hostages "no hope for release" and "leaves Hamas armed and in control of territory", it said in a statement.
Israel has come under fire in recent days over its plans to take over Gaza City, with UN ambassadors condemning the move which Netanyahu says is the "best way" to end the war.
Last year, Spain, Ireland and Norway formally recognised Palestine as a state, in the hopes it would encourage a ceasefire between Hamas and Israel.
The state of Palestine is currently recognised by 147 of the UN's 193 member states.
At the UN, it has the status of a "permanent observer state", allowing participation but no voting rights.
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