Israel is disappointed by Canberra's decision to back a United Resolution calling for an end to the occupation of Palestinian territories.
But ambassador to Australia Amir Maimon downplayed suggestions the relationship between Israel and Australia had suffered irreparable damage.
"You don't measure a relationship based on one or two votes," he told reporters following an event at the Israeli embassy in Canberra.
"It's not a secret, but it's perfectly OK to be disappointed. We don't always get 100 per cent of what we want."
Australia was among 157 nations to vote in favour of a resolution calling on Israel to rapidly end its occupation of Palestinian territories.
Eight countries opposed it, including the US and Israel.
In response, Israeli Prime Minister Benjamin Netanyahu's office labelled Australia's "flip-flop" disappointing and implied the nation was no longer a key ally.
"Awarding anti-Semitism and terrorism with a state in the heart of the Jewish ancient homeland and cradle of civilisation will invite more terrorism and more anti-Semitic riots at campuses and city centres, including in Australia," Mr Netanyahu's office told The Australian newspaper.
Deputy Prime Minister Richard Marles defended Australia's UN vote in support of a two-state solution - a long-held position of the government - and said it did not change the two nations' friendship.
"We're a close friend and we don't see that there is any change in our friendship, our relationship, our support for Israel," Mr Marles told ABC Radio on Friday.
The motion further recognised the "inalienable rights of the Palestinian people, primarily the right to self-determination and the right to their independent state".
The vote marked a change from Australia, which previously abstained from similar motions.
Mr Marles rejected the suggestion the vote would encourage terrorism and anti-Semitism, arguing Australia was simply using its voice to support Israel and a two-state solution.
"Our responsibility here is to try and use our international voice in that way," he said.
"We're not changing from the idea that there should be a two-state solution."
Israel's war in Gaza was sparked by an attack by Hamas on October 7, 2023, that killed 1200 people and resulted in 250 hostages being taken, according to Israeli authorities.
In response, Israel has since waged a brutal occupation of the Gaza Strip which has killed more than 44,000 people, according to the local health ministry, with tens of thousands more missing or believed to be buried under rubble.
Mr Netanyahu, along with his former defence minister and Hamas leaders, was charged with war crimes under an International Criminal Court ruling, meaning Australia would be required by international law to arrest the Israeli prime minister if he set foot on Australian soil.
Mr Netanyahu said Australia had failed to denounce the October 7 attacks.
"To the contrary, they have embraced those atrocities that included the rape, murder and beheading of Jews," he said.
"It's a shame that the current Australian government wants to award these savages with a state."
The Albanese government has repeatedly condemned the Hamas attacks on Israel and called for the release of Israeli hostages.