Scott Morrison has refused to condemn Israel's policies against Palestinians and says "no country is perfect".
The prime minister insists Australia is one of Israel's closest and strongest friends other than the US.
"No country is perfect and there are criticisms made of all countries," he told reporters on Wednesday in response to human rights accusations of Israel enacting a system of apartheid against Palestinians.
"But I can assure you that Australia and my government in particular will remain a staunch friend of Israel."
Mr Morrison was questioned about a report by Amnesty International accusing Israel of subjecting Palestinians to a system of apartheid.
"Our report reveals the true extent of Israel's apartheid regime. Whether they live in Gaza, East Jerusalem, Hebron, or Israel itself, Palestinians are treated as an inferior racial group and systematically deprived of their rights," the organisation's secretary general, Agnes Callamard, said.
"We found that Israel's cruel policies of segregation, dispossession and exclusion across all territories under its control clearly amount to apartheid. The international community has an obligation to act."
