Prime Minister Anthony Albanese has denounced the burning of a Melbourne synagogue as an act of "terrorism", but rejected claims from Israel's prime minister that the attack was linked to Australia's UN vote earlier this week.
Meanwhile the government has announced a $32.5 million boost to improve security at synagogues and Jewish schools.
A meeting of state and federal police is due to be held tomorrow.
An arson attack carried out by two masked individuals on Adass Israel Synagogue in Ripponlea sent shockwaves through the Jewish community on Friday.
The incident drew strong criticism from Benjamin Netanyahu who labelled the incident "an appalling act of antisemitism".
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At a press conference today, Albanese said there had been a worrying rise in antisemitism, which he said the government has called out "consistently".
He said the Victorian police and the Australian Federal Police will hold a meeting tomorrow to make a formal determination on whether the synagogue attack was an act of terrorism.
"But if you want my personal view, quite clearly, terrorism is something that is aimed at creating fear in the community and the atrocities that occurred at the synagogue in Melbourne clearly were designed to create fear in the community," Albanese told reporters.
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"And therefore, from my personal perspective, certainly fulfil that definition of terrorism."
Netanyahu went on to blame the attack on Australia's "anti-Israel position" after the government voted with 156 countries to call an end to Israel's "unlawful presence in the Occupied Palestinian Territory, as soon as possible".
Albanese defended the decision, maintaining that the government had a long-standing position on a two-state solution.
"Can I make this point very clearly that 156 countries supported the resolution that was passed by the United Nations, of the Five Eyes partners, Australia's most important security partners, four of the five voted for that resolution. New Zealand, Canada, the United Kingdom and Australia," Albanese said.
"In addition to that, our major partners, whether it be France, Japan, Germany, our ASEAN partners, overwhelmingly supported that resolution."
Albanese also reiterated calls to release the remaining hostages in Gaza.
The government will also pledge $32.5 million to the Executive Council of Australian Jewry (ECAJ) "in light of the increase in antisemitism in Australia".
It will improve security at Jewish sites including synagogues and schools.
It's on top of a $25 million grant announced last year, and funding for Jewish community sites under the Albanese Government's $50 million Securing Faith-Based Places grant program.
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