Anthony Albanese has declared the entire world knows a two-state solution is needed in the Middle East and dismissed pushback as "more nasty negativity".
After Foreign Minister Penny Wong used a major speech to suggest formal recognition of Palestine was the only way to stop endless violence in the region, Mr Albanese said calls for statehood were not radical.
"The entire world knows that there needs to be a two-state solution in the Middle East, that is something that's been Australia's long-standing policy," the prime minister told Seven's Sunrise program on Thursday.
"It's something I have been very consistent on for a long period of time, but Hamas can play no role in a future state, we have made that very clear as well, as has the rest of the world."
There has been no formal decision within the government on whether to recognise Palestine but the prime minister said Labor's stance on a two-state solution was unchanged.
Opposition Leader Peter Dutton launched a blistering spray against Labor's comments on Palestine during a speech at the Sydney Opera House on Wednesday.
Mr Dutton said the commentary damaged relations with Israel for a "crass political win".
He also told Sydney radio station 2GB the Jewish community was reeling from the government's remarks.
"Anthony Albanese and Penny Wong need to move past the university politics days, they've got a real slight against Israel," he said.
"There is an enormous amount of concern within communities, within Jewish communities, but right across the Australian community with the level of anti-Semitism that we're seeing.
"Why we would want to treat Israel the way that Penny Wong is at the moment, I've got to say, is beyond me."
However, Mr Albanese countered that his foreign minister's comments reflected what had been said at an international level.
"This is just more nasty negativity from Peter Dutton ... with a focus on a conflict that has been there my entire lifetime," he said.
Greens leader Adam Bandt said the federal government's comments on Palestine were a "smokescreen", accusing Labor of walking back support for statehood following criticism.
"Talk is cheap while people are getting slaughtered in their tens of thousands and Labor continues to support the invasion of Gaza and military exports to Israel," he said.
"There's no barrier to acting right now.
"Labor should immediately recognise Palestine, end their support for the invasion and end all military exports to Israel."
