Treasurer Jim Chalmers says recognition of Palestine is inevitable as global momentum builds, but warns Hamas must be excluded from governance
His remarks come as Canada joins France and the United Kingdom in declaring their intention to recognise a Palestinian state, provided key conditions are met, including the exclusion of Hamas from any future leadership and the release of Israeli hostages.
Prime Minister Mark Carney confirmed Canada would proceed with recognition by September, conditional on agreements from the West Bank's governing authority.
His move follows a wave of diplomatic momentum among Western allies, as global leaders prepare for a high-stakes showdown at the UN General Assembly in September 9.
Mr Chalmers welcomed the international developments and said the Albanese government was in ongoing talks with global counterparts to chart Australia's next steps.
'The Prime Minister and the Foreign Minister will respond in due course, but I welcome this momentum and this progress in the international community,' Mr Chalmers told Sky News.
'From an Australian point of view the recognition of the state of Palestine is a matter of when not if.
'So, in that light, this progress is welcome, but it is also conditional. As Prime Minister Carney said and as Prime Minister Albanese said, we need to make sure that there is no role for Hamas in any future leadership. We need to make sure that the hostages are released too.
'Our support is conditional in overcoming some of those obstacles. So, it's a matter of when not if.'
Despite the clarity of direction, Mr Chalmers echoed Prime Minister Anthony Albanese's caution about setting a deadline for recognition, insisting that timing would depend on international conditions and negotiations.
'We'll make our decisions on this matter. I think there were good reasons yesterday why the Prime Minister was reluctant to set a time frame on this,' he said.
'There are obstacles to overcome, but we see the recognition for the state of Palestine as an important step towards a two-state solution.
'It's the best pathway out of this enduring cycle of violence, and most importantly, so that Israeli families and Palestinian families can raise their kids in peace. That's what this is all about.'
Mr Albanese, speaking yesterday, stopped short of confirming a timeline, but reiterated his lifelong support for a two-state solution and hinted that the moment for meaningful change may finally be approaching.
'Sometimes out of a crisis comes a moment of opportunity to actually advance forward in a real way, advance forward for Israelis and Palestinians,' he said.
'I've said for a long time, my entire political life, I support two states: the right of Israel to exist within secure borders and the right of Palestinians to have their legitimate aspirations for their own state realised. That's my objective, not making a statement, not winning a political point, but achieving that.'
Mr Chalmers also addressed criticism that recognising Palestine now would amount to rewarding Hamas, firmly rejecting the suggestion.
'I don't see it that way. We heard it from Prime Minister Carney and Prime Minister Albanese that the hostages are released and there is no role for Hamas in the future of a Palestinian state,' he said.
'That is a key consideration for all the like-minded countries in the world that have been working through these issues in conjunction with us that Hamas is not rewarded and that Hamas has no role.'
The international push remains fraught with geopolitical tension, with US President Donald Trump opposing any move to recognise Palestine.
But Australia's top leaders appear undeterred, determined to shape a diplomatic path that could finally bring a two-state solution back within reach.
'There is a lot of discussion with our counterparts in the international community, and the Prime Minister, the Foreign Minister, and the Cabinet are considering the best way forward,' Mr Chalmers said.
'The Prime Minister didn't put a timeframe on that yesterday, so, I won't be putting a timeframe on it this morning.'
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