The PM described the official recognition of the war-torn Middle East region as the best chance for “just and lasting peace” in Gaza.

Australia will stand among a fast-growing map of 147 countries to have formally recognised Palestine as a sovereign nation.

Albanese said today that Australia supports the idea of Israel and Palestine peacefully co-existing.

“The international community’s vision for a just and lasting peace in the Middle East always encompassed two states, living side-by-side with internationally recognised borders: a state of Israel and a state of Palestine with security for the people of both nations,” Albanese said.

“We know that two states is the key,” Foreign Minister Penny Wong added.

“It is the key to a just peace for Israelis and Palestinians alike.”

What is Palestinian statehood?

Palestine’s existence as a state is complicated and depends on the diplomatic lens you are looking through.

International law dictates that a sovereign state means a permanent population, a clearly defined territory, an effective government and the capacity to operate on the world stage in international relations.

These guidelines were introduced during the Montevideo Convention on the Rights and Duties of States in 1933.

But because of Palestine’s ongoing historic conflict with Israel, there are no formally or internationally agreed boundaries, capital, government or army in Palestine.

The Israeli military has occupied the West Bank and Palestinian authority elsewhere has progressively weakened.

Statehood would mean Palestine would be formally recognised as the Occupied Palestinian Territory of Gaza, the West Bank and East Jerusalem.

The area now known as Palestine covers around 6220 square kilometres of land.

Other countries agreeing to recognise statehood does not automatically make a region a sovereign territory.

In the current state of play, it is a mostly symbolic gesture from Australia and other nations who are taking a moral stance against Israel’s military action.

It will likely do very little to ease the pressure for Palestinians on the ground right now or provide immediate change to the humanitarian crisis.

Official Palestinian statehood would come with some conditions, including banning Hamas from having a role in a future government and the release of Israeli hostages.

“Our government has made it clear that there can be no role for terrorists of Hamas in any future Palestinian state,” Albanese said in his announcement.

“This is one of the commitments Australia has sought and received from President Abbas and the Palestinian Authority.”

9News political editor Charles Croucher said he expects more understanding of how Palestine would operate as a sovereign territory will emerge next month.

“We still don’t know details like what the borders would be, what involvement the Palestinian Authority would have post-elections, and what happens if Hamas are somehow involved in those elections,” Croucher said.

“This will all come out over time, in the month, in the lead up to that United Nations General Assembly.

“But certainly, given the pressure that we’ve seen build here in Australia, domestically, the protests of the last fortnight and now this move that had been foreshadowed for some time, announced today and will play out in September.”

Who else recognises Palestine as a state?

The Australian government had previously held back on agreeing to recognise Palestine over intricate and historic diplomatic complexities to do with the ongoing conflict in the Middle East.

The state of Palestine is recognised by 147 of 193 UN members.

Many countries have officially observed the Palestinian state since 1988, the year the State of Palestine was established.

This includes key world powers including China and Russia.

Some are more recent, including Spain, Ireland and Norway in 2024.

New Zealand, France and Canada have also indicated plans or are considering recognition.

The United States, a key ally of Israel, has repeatedly ruled out any plans to recognise Palestine.

“The big issue for Australia, at least, is how this impacts our most important security relationship and partnership, and that is with the United States,” Croucher added.

“Because this is something that President Trump has been quite steadfast on.”

What does this mean for Israel?

Palestinian statehood will not erase Israel’s statehood.

However, Israel has long rejected a two-state solution with Palestine.

In a furious reaction to the UK’s recognition of Palestine, President Benjamin Netanyahu said it would only reward “Hamas’ monstrous terrorism”.

“Israel categorically rejects international dictates regarding a permanent settlement with the Palestinians,” Netanyahu said in 2024.

“Israel will continue to oppose unilateral recognition of a Palestinian state.”

Hamas also does not back a two-state solution as the terrorist group is opposed to Israel’s existence.

Israel was established as a Jewish state in 1948.

Former US President Harry S. Truman became the first world leader to officially recognise its statehood just minutes after it was created.

Israel’s statehood was enshrined by the UN the following year.