Australia ended direct aid to the Palestinian Authority on Monday over fears it could be used to support people convicted of political violence.
Canberra will halt the $10 million per year it gave to the World Bank's trust fund for Palestinian recovery and development, Foreign Minister Julie Bishop said.
"I wrote to the Palestinian Authority on May 29, to seek clear assurance that Australian funding is not being used to assist Palestinians convicted of politically-motivated violence," she said in a statement.