Treasurer Jim Chalmers said Australia's recognition of a Palestinian state is a matter of "when, not if", as more countries move to formally acknowledge its statehood.
Chalmers' comments came after Canadian Prime Minister Mark Carney followed the United Kingdom and France, saying his country intends to recognise a Palestinian state at the United Nations General Assembly in September.
The Labor federal government views Palestinian statehood as an important step towards a two-state solution and as the "best pathway out of this enduring cycle of violence", Chalmers said.
"From an Australian point of view, recognition of the state of Palestine is a matter of when, not if," he told Sky News on Thursday.
"This progress, this momentum that we're seeing, is welcome, but it's also conditional ... we need to make sure that there's no role for Hamas in any future leadership."
Despite indications Australia will also follow suit, Prime Minister Anthony Albanese has declined to set a timeline for when that would take place.
Overnight, Albanese held talks with his UK counterpart Keir Starmer on the Middle East, and the pair discussed support for a two-state solution.
Albanese reiterated Australia's "long-standing and strong support for a two-state solution", and cited the country's aid contributions.
Opposition frontbencher James Paterson said he did not support the "premature" recognition of a Palestinian state before the conclusion of a peace process that establishes the two-state principle, which would include Israel.
"I don't think we should decide Australia's foreign policy according to some artificial measure of momentum," he told Sky News.
"We should decide if it's consistent with our national interest and the principles which the Australian government has upheld on a bipartisan basis for decades, which is that we want two states."
James Paterson said Palestinian recognition would be "premature" before reaching a two-state solution. Source: AAP / Mick Tsikas
"It's time to be recognising the state of Palestine ... in line with comparable countries across the world," she told Sky News.
Canada to recognise Palestinian state
"Canada intends to recognise the State of Palestine at the 80th session of the United Nations General Assembly in September 2025," Carney said on Thursday.
Last week, French President Emmanuel Macron said his country would formally recognise a Palestinian state, and on Tuesday, UK Prime Minister Keir Starmer told his cabinet Britain would follow suit.
Mark Carney said the policy shift was necessary to preserve hopes of a two-state solution. Source: AP / Adrian Wyld
"That possibility of a two-state solution is being eroded before our eyes," Carney told reporters in Ottawa.
He referenced Israel's "ongoing failure" to prevent a humanitarian catastrophe in Gaza, as well as the expansion of settlements in the occupied West Bank and East Jerusalem.
"For decades, it was hoped that [a two-state solution] would be achieved as part of a peace process built around a negotiated settlement between the Israeli government and the Palestinian Authority.
"Regrettably, this approach is no longer tenable."
