Australia and Israel will co-operate more on technological innovation and make it easier for people to travel between both countries, under newly signed leaders' agreements.
Prime Minister Malcolm Turnbull and Israeli Prime Minister Benjamin Netanyahu signed the agreements ahead of ministerial meetings in Sydney on Thursday.
Both leaders said they were keen for their countries to expand their business and trade ties.
Mr Turnbull said the agreement on technological innovation and research would provide a framework for Australian scientists and businesses to create industries of the future with the help of Israel's well-established hi-tech community.
The air services agreement, which compliments a separate deal signed between Qantas and Israeli carrier El Al, would help foster business ties by making travel easier.
"There are a number of Australian businessmen and women who are investing in innovative technology-based industries between Israel and Australia," Mr Turnbull said at the start of the ministerial meetings, which included Treasurer Scott Morrison, Defence Minister Marise Payne, Environment Minister Josh Frydenberg and Deputy Prime Minister Barnaby Joyce.
"We want to deepen that.
"The air services agreement is part of that. There's no substitute for people getting together.
"We should be doing a lot more together. We shouldn't allow the tyranny of distance in the 21st century (to prevent that).
"There's so much scope for co-operation."
Two-way trade between Israel and Australia is worth about $1.2 billion each year.
Mr Netanyahu said he would like to see that double or tripled, and he believed Australia could act as a gateway for Israeli businesses wanting to expand into Asia.
"If I can schlep here, they can too," he told the ministerial roundtable meeting.
"I can testify it ain't bad."
Mr Netanyahu said it was vital countries like Israel and Australia co-operated to develop technology to "fight the barbarians" in the Middle East.
Countries like Israel and Australia needed to "repel danger and seize opportunities", he said.
"We are working ... with other like-minded states to prevent terrorist attacks.
"This half century will be dominated by progress and freedom, not renegade barbarism."
In a joint statement the leaders said they were concerned about security challenges in the Middle East and emphasised the need for strengthening international co-operation to tackle terrorism.
In a joint statement, both Mr Turnbull and Mr Netanyahu expressed concern about recent ballistic missile tests by Iran and called on the country to implement its obligations under a UN Security Council resolution.
The leaders were also worried about Iran's support for Islamist militant group Hezbollah.
The comments on Iran come after Australia recently restored relations between Canberra and Tehran and began to explore trade opportunities with each other.
Security and terrorism as well as ways Australia and Israel could work together on cyber security have featured heavily in talks between the two leaders during the past two days.
The prime ministers also committed to explore opportunities for future collaboration in the areas of agriculture, water, energy and environmental protection.
