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Government announces $25 million in Palestinian aid, as Labor conference debate looms

πŸ“° The Conversation AU πŸ• July 20, 2026 at 9:14 PM

The Albanese government has announced $25 million in aid for Palestine, in timing designed to help manage the debate about the Middle East at Labor’s national conference this week.

The aid includes assistance for recovery in Gaza, and support to β€œstrengthen the institutional foundations of the State of Palestine”.

The Middle East debate is expected to be one of the few points of serious contention at the conference. It will come up in the conference’s last session, on Saturday.

On Monday, in an unusual move, the Israeli embassy issued a lengthy statement criticising the Israel-Gaza section of the draft platform for the conference as too one-sided.

The embassy said elements of the draft β€œrisk placing responsibility for the conflict on one party while giving insufficient attention to the decisions, conduct and continuing obligations of the Palestinian leadership and terrorist organisations such as Hamas”.

Announcing the funding, Foreign Minister Penny Wong and the Minister for International Development Anne Aky said it β€œsupports Palestinian-led efforts to strengthen public institutions, improve economic management and advance democratic governance”.

It would β€œhelp to build a stronger and more effective Palestinian Authority capable of responding to the needs of its people”.

In Monday’s statement the Israeli embassy said the Palestinian Authority β€œcontinues to encourage terror by glorifying terrorists and maintaining the payment mechanism for terrorists” including monthly payments for terrorists who killed Israelis.

The Australian government package provides $15 million to the United Nations Horizon Fund. This reconstructs infrastructure including for water, sanitation, health, education and housing, and funds the clearing of debris.

There is also $15 million for the World Bank’s Palestinian Fund for Reconstruction and Development β€œto strengthen the Palestinian Authority’s public financial management”.

β€œStrong, accountable and effective Palestinian institutions will be critical to future recovery efforts, regional stability and long-term prospects for peace,” Wong and Aly said.

β€œWe will continue to work with partners to hold the Palestinian Authority to commitments it has made to Australia and the international community which include to reform governance, terminate prisoner payments, institute schooling reform, demilitarise and hold general elections.”

The ministers said Hamas β€œcontinues to damage the prospects of a two-state solution and reject Israel’s right to exist.

“Australia remains unequivocal in its condemnation of Hamas.

“The Australian government reaffirms that Hamas must disarm and play no role in the State of Palestine.”

β€œBy supporting effective civilian governance and public administration, Australia is helping address the conditions that allow terrorism and extremism to take hold, while strengthening the institutions needed for long-term stability.”

The Australia Palestine Advocacy Network (APAN) condemned the Israeli embassy’s intervention.

β€œThe Embassy’s public intervention goes well beyond normal diplomatic engagement. APAN said in a statement.

“Attempting to influence the internal policy deliberations of an Australian political party crosses a line and raises serious concerns about foreign interference in Australia’s democratic processes.”

The Conversation

Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.