Israeli Prime Minister Benjamin Netanyahu hopes to triple trade with Australia as the two countries forge closer technology and aviation ties.
Bilateral trade between the pair is currently worth about $1.2 billion a year, with Israel sending less than one per cent of its exports Down Under and Australian products accounting for just 0.3 per cent of Israel's imports.
"Our trade is a billion dollars. It should be at least double or triple that," Mr Netanyahu said as he sat for talks with Prime Minister Malcolm Turnbull and senior government ministers in Sydney on Thursday.
"I'd like to encourage the Australian and Israeli companies to increase in trade.
"If I did the schlep, they should do it too."
His comments came after he and Mr Turnbull oversaw the signing of agreements for more co-operation between Israel and Australia on technological innovation and air services during the second day of the Israeli prime minister's four-day visit.
The leaders committed to dumping existing double taxation rules and finding ways to enhance collaboration on defence, cybersecurity, education, agriculture, water, energy and environmental protection.
"There is so much scope for co-operation," Mr Turnbull said at the start of the meeting, which included Treasurer Scott Morrison, Defence Minister Marise Payne, Environment Minister Josh Frydenberg and Deputy Prime Minister Barnaby Joyce.
Mr Turnbull said the technological innovation and research agreement would provide a framework for Australian scientists and businesses to create "industries of the future" aided by Israel's well-established hi-tech community.
The air services agreement, which compliments a codesharing deal signed by Qantas and Israeli carrier El Al, would help foster business ties by making travel between the two countries 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.
"We want to deepen that.
"The air services agreement is part of that. There's no substitute for people getting together."
The push to deepen trade ties between Israel and Australia dominated the day.
However Mr Netanyahu also managed to fit in a visit to the Moriah College Jewish school in Bondi Junction, where he was mobbed by cheering primary students, while his wife Sara earlier shared morning tea with Lucy Turnbull at Jesse's kosher bakery in nearby Rose Bay.
Meanwhile, he and Mr Turnbull released a wide-ranging joint statement covering their trade goals and emphasising the need for strengthening international co-operation to tackle terrorism.
Mr Netanyahu said one of the great paradoxes of the 21st century was how terrorists were using technology to "take us back to the dark ages".
Mr Turnbull and Mr Netanyahu also expressed concern about recent ballistic missile tests by Iran and called on Tehran to implement its obligations outlined in a UN Security Council resolution.
Australia recently restored relations with Iran and began to explore trade opportunities.
While Mr Netanyahu has enjoyed a warm welcome from Mr Turnbull and Sydney's Jewish community, Palestinian supporters will rally in the city's CBD on Thursday night to protest Israel's settlement expansion in the West Bank.
The Australian National Imams Council also released a statement accusing Israel of committing brutalities against Palestinians and urged Mr Turnbull to demand Israel end its "illegal settlement" and respect the rights of the Palestinians.
