Israeli leader Benjamin Netanyahu has rebuked two former Labor prime ministers, Bob Hawke and Kevin Rudd, over their call for the recognition of Palestine, saying it would create a terrorist state that was "another bastion of radical Islam".
On day one of a four-day visit to Australia, the first by a sitting Israeli prime minister, Mr Netanyahu challenged the pair to define what sort of Palestinian state they envisaged.
"I ask both former prime ministers to ask a simple question: What kind of state will it be that they're advocating? A state that calls for Israel's destruction?
"A state whose territory will be used immediately for radical Islam?"
But Mr Netanyahu applauded the Turnbull government for its willingness to stand up to the "absurdities" of the United Nations Security Council, which in December passed a resolution demanding Israel cease unlawful settlement activity.
"I think it's important that you have straightforward and clear-eyed countries like Australia that often bring it back to Earth," he said.
Mr Netanyahu played down the role of settlement expansion in fuelling tension and said the biggest hurdle to peace was a failure by Palestine to recognise a Jewish state.
"It is not conceivable that people should say the Palestinians should have a state and continue to call for the annihilation of the Jewish state, Israel," he said.
"Secondly, we know that in the realities of the Middle East, if Israel is not there to ensure security, then that state very quickly will become another bastion of radical Islam."
In a rare intervention, Mr Hawke earlier this month criticised the Israeli parliament's decision to approve a law retroactively legalising 4000 settler homes built on privately owned Palestinian land.
"Australia was there at the very beginning," he wrote in The Australian Financial Review, a reference to Australia being the first country to vote in favour of a 1947 resolution that led to the establishment of Israel.
"The least we can do now, in these most challenging of times, is to do what 137 other nations have already done – grant diplomatic recognition to the State of Palestine."
His call has been backed by Mr Rudd, as well as former foreign ministers Bob Carr and Gareth Evans.
The remarks advanced the prospect of an end to long-running bipartisanship on the Israel-Palestine conflict, stirring elements of the Labor Party that are already pushing for a less pro-Israel stance.
The 2015 ALP National Conference passed a motion that said if there were no progress towards a two-state solution, then a future Labor government would "discuss joining like-minded nations who have already recognised Palestinian territories".
Position unchanged
Mr Netanyahu arrived in Sydney on Wednesday to find Mr Turnbull had penned a newspaper piece accusing the UN of being prejudiced against the nation.
Speaking later to reporters at Kirribilli House, Mr Turnbull said: "Our position is exactly the same as it always has been, and has been for many years.
"We support an outcome which has two states where Israelis, the Israeli people, the Palestinian people live side by side as a result of direct negotiations between them.
On December 23, the UN Security Council adopted a resolution that the establishment of Israeli settlements in Palestinian territory occupied since 1967 have "no legal validity", constitute a "flagrant violation" under international law and are a "major obstacle" to a two-state solution.
Australia was not eligible to vote but indicated it would not have supported the motion.
Mr Turnbull said Australia was a "very committed friend of Israel, we are a very consistent friend".
He said he believed US President Donald Trump's remarks about being happy with a one-state solution had been "a bit over-interpreted" and, on a more upbeat note, he added that "perhaps the moons are aligning" for a resumption of peace talks between Israel and Palestine.
Call for leadership
Speaking at a business lunch attended by Mr Netanyahu, Labor leader Bill Shorten said the party believed in a two-state solution.
"We expect the Palestinian leadership to recognise Israel's legitimate right to security," he said.
"Of course we acknowledge the people of Palestine's legitimate aspirations, for a state of their own.
"This will take leadership from both sides."
Mr Netanyahu was asked by reporters about a corruption inquiry allegedly implicating billionaire businessman James Packer.
All that existed between the Netanyahus and the Packers was friendship, which was a "good thing", he said.
"Obviously I won't comment on details but I say I think nothing will come of it because there is nothing there, except friendship, which is a good thing," he said.
Mr Netanyahu is accompanied by a delegation of business leaders and was due to attend a community event at a Sydney synagogue on Wednesday night.
On Thursday he and Mr Turnbull will sign agreements for closer co-operation in the areas of research and innovation, as well as air services. Mr Netanyahu is in Australia until Sunday.
