Australia, the UK and Canada's recognition of Palestinian statehood came into effect from Sunday night after Prime Minister Anthony Albanese arrived in the US for a long-awaited United Nations General Assembly meeting.
The three countries have joined more than 140 United Nations member states that recognise Palestine in a bid to build new momentum for a two-state solution as humanitarian suffering in Gaza worsens.
"Australia recognises the legitimate and long-held aspirations of the people of Palestine to a state of their own," Mr Albanese and Foreign Minister Penny Wong said in a joint statement.
"Today's act of recognition reflects Australia's longstanding commitment to a two-state solution, which has always been the only path to enduring peace and security for the Israeli and the Palestinian peoples."
The first steps towards a two-state solution must be a ceasefire in Gaza and the release of hostages taken by the designated terror group Hamas on October 7, 2023, the leaders said.
They reiterated that Hamas, which de facto governs Gaza, must have no role in a Palestinian state.
In accordance with requirements set by Australia, the Palestinian Authority - which runs the West Bank - has recognised Israel's right to exist and committed to holding democratic elections and enacting finance, governance and education reforms.
The government has also said Arab League countries and the US, which have long opposed Palestinian statehood, are vital to reconstructing Gaza, building the state of Palestine and guaranteeing Israel's security.
"We want to see a ceasefire. We want to see the hostages released," Mr Albanese told ABC television 24 on Monday morning (AEST) from New York.
"We want to see a breakthrough in a longer-term solution, an end to this cycle of violence."
The Israeli government said overnight that the recognition would further destabilise the Middle East and undermine prospects for a peaceful solution to the conflict.
"Israel will not accept any detached or imaginary text that attempts to force it to accept indefensible borders," Israel's foreign ministry said on X.
Asked about Israel's response, Mr Albanese said it "needs to heed that call" by Australia, the UK and Canada and others.
"The loss of human life, the conditions in which people are being put in Gaza is completely unacceptable and the world is saying that we need to act as a global community here," he told Seven's Sunrise program on Monday.
Mr Albanese earlier was under pressure from allies of US President Donald Trump not to recognise Palestine.
A group of Republican Congress members penned an open letter to Mr Albanese and his French, Canadian and UK counterparts, warning proceeding with recognition would "put your country at odds with long-standing US policy and interests and may invite punitive measures in response".
Mr Albanese is yet to secure a meeting with Mr Trump but a bilateral discussion is still on the cards, as Australia seeks assurances on the AUKUS trilateral defence agreement and an easing in tariffs on Australian goods imported to the US.
But recognition could be a point of contention if the two come face-to-face during Mr Albanese's US trip.
The coalition has also condemned the move and claimed recognition would strengthen Hamas's credibility.
"Today, the Albanese government extends a hollow gesture of false hope to the Palestinian people," Opposition Leader Sussan Ley said.
"For the Israeli people, it extends a chilling act of concession."
Australia's pro-Palestine movement continued to hold rallies at the weekend, calling for the government to go further and sanction Israel.
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