Chalmers Suggests Australian Recognition of Palestine is Inevitable Following Canada's Decision

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Treasurer Jim Chalmers said Australia’s recognition of a Palestinian state is a matter of “when, not if”, as more countries move to formally acknowledge its statehood.

Chalmers’ comments came after Canadian Prime Minister Mark Carney followed the United Kingdom and France, saying his country intends to recognise a Palestinian state at the United Nations General Assembly in September.

The Labor federal government views Palestinian statehood as an important step towards a two-state solution and as the “best pathway out of this enduring cycle of violence”, Chalmers said.

“From an Australian point of view, recognition of the state of Palestine is a matter of when, not if,” he told Sky News on Thursday.

“The advancements and momentum we’re witnessing are encouraging, yet they come with conditions. It’s crucial to ensure that Hamas has no part in any prospective leadership.”

Despite indications Australia will also follow suit, Prime Minister Anthony Albanese has declined to set a timeline for when that would take place.

Overnight, Albanese held talks with his UK counterpart Keir Starmer on the Middle East, and the pair discussed support for a two-state solution.

Albanese reiterated Australia’s “long-standing and strong support for a two-state solution”, and cited the country’s aid contributions.

Opposition frontbencher James Paterson said he did not support the “premature” recognition of a Palestinian state before the conclusion of a peace process that establishes the two-state principle, which would include Israel.

“I don’t think we should decide Australia’s foreign policy according to some artificial measure of momentum,” he told Sky News.

“We need to determine if it aligns with our national interests and the principles that the Australian government has consistently supported across party lines for many years, advocating for a two-state solution.”

Close up of a politician with blue glasses, wearing a suit.

James Paterson said Palestinian recognition would be “premature” before reaching a two-state solution. Source: AAP / Mick Tsikas

Greens senator Sarah Hanson-Young said the federal government must formally recognise a Palestinian state.

“It’s time to be recognising the state of Palestine … in line with comparable countries across the world,” she told Sky News.

Canada to recognise Palestinian state

“Canada intends to recognise the State of Palestine at the 80th session of the United Nations General Assembly in September 2025,” Carney said on Thursday.

A man in a dark suit speaks with the media during a news conference.

Mark Carney said the policy shift was necessary to preserve hopes of a two-state solution. Source: AP / Adrian Wyld

Carney said his decision was informed by Canada’s “long-standing” belief in a two-state solution to the decades-long Israeli-Palestinian conflict.

“That possibility of a two-state solution is being eroded before our eyes,” Carney told reporters in Ottawa.

He referenced Israel’s “ongoing failure” to prevent a humanitarian catastrophe in Gaza, as well as the expansion of settlements in the occupied West Bank and East Jerusalem.

“For decades, it was hoped that [a two-state solution] would be achieved as part of a peace process built around a negotiated settlement between the Israeli government and the Palestinian Authority.

“Regrettably, this approach is no longer tenable.”