A future Labor government will lift foreign aid every year, after the coalition slashed the aid budget.
Labor will lift foreign aid every year if it wins the next election, with the eventual goal to more than double it from the lowest level in Australia's history.
The coalition government slashed the growth rate of foreign aid funding, opening the door for other nations to offer controversial loans to neighbouring Pacific countries.
At Labor's national conference in Adelaide on Tuesday, factions agreed to aim to get Australia's foreign aid budget towards 0.5 per cent of gross national income.
It is currently at 0.22 per cent and will drop even lower if it stays at the same rate.
A Labor government will lift foreign aid every year, starting with its first budget, to eventually try to reach the international standard of 0.5 per cent.
The party will also call on a Labor government to make progress towards officially recognising Palestine.
But the decision will be based on the advice of foreign policy experts, and will be left to a future Labor cabinet.
Prime Minister Scott Morrison last week announced Australia will recognise West Jerusalem as Israel's capital, once a two-state solution with Palestine is agreed.