Australia's indifference to Jewish refugees in 1938 worsened the impact of the Holocaust, Stuart Robert says.
The federal Liberal MP has moved a motion in parliament apologising to Israel as the nation marks 70 years of the creation of the modern state.
This year also marks 80 years since the Evian conference in France when the plight of Jewish refugees fleeing Nazi persecution was raised.
The deaths of millions of Jewish people during the Holocaust were exacerbated by the failure of the Australian and other governments to protect Jewish people, he said.
"Our nation's government turned its back on our Jewish friends at the exact time they needed us. Our parliament said nothing," he said.
"Australia was not alone; the world turned its back. For Australia's indifference, this parliament says sorry."
Fellow Liberal Steve Irons backed Mr Robert's motion, saying the Australian government and others failed to protect Jewish people from persecution.
Six million Jewish people were killed during the Holocaust, he said.
"This number was exacerbated by the Australian government and other governments around the world for being naive to the extent of the persecution of the Jewish people by the Nazi regime."
Shadow attorney-general Mark Dreyfus said Australia's relationship with Israel had stood the test of time.
While the two nations don't agree on everything, Mr Dreyfus said he would celebrate Israel's 70th anniversary of independence while still acknowledging Australia's support for a two-state solution with Palestine.
Debate on the apology is set to continue later on Monday.
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