Australian money paid to the United Nations agency working in Gaza should be diverted to a different aid group, the federal opposition says, following Israel's move to ban UNRWA from operating within its borders.
Israel's parliament, the Knesset, passed laws overnight declaring UNRWA a terror organisation and banning it from operating in Israel — putting it at risk of collapsing when the laws take effect in 90 days.
The Coalition has maintained that Australia should redirect its funding away from UNRWA after Israel alleged at the beginning of this year that 12 members of the aid group were linked to the October 7 terror attack by Hamas.
The United Nations found nine UNRWA employees "may have" been involved in the October 7 attack, who had been fired.
Shadow Foreign Minister Simon Birmingham said it was a matter for Israel's parliament to decide its own laws, "just as the US passed legislation banning US taxpayer funding going to UNRWA" after the allegations linking some staff to the attack.
"The Coalition believes no Australian taxpayer dollars should be at risk of falling into terrorist hands, and funds should instead be provided to trusted humanitarian organisations," Senator Birmingham said.
"We recognise the needs of innocent civilians in Gaza are great, support increased humanitarian aid reaching civilians and urge Israel to ensure the free flow of aid to innocent civilians, especially in light of these decisions."
Simon Birmingham says the Coalition supports increased humanitarian aid into Gaza, but it should be delivered by groups other than UNRWA. (ABC News: Matt Roberts)
Australia briefly suspended funding to UNRWA early this year, but resumed it in March.
Foreign Minister Penny Wong said UNRWA does "life-saving work" that should continue.
"Australia opposes the Israeli Knesset's decision to severely restrict UNRWA's work," Senator Wong said.
"On Sunday, Australia joined Canada, France, Germany, Japan, South Korea and the UK to urge Israel's Knesset not to proceed with this legislation."
Penny Wong says UNRWA does life-saving work. (Reuters: Caitlin Ochs)
UNRWA's commissioner-general Phillippe Lazzarini said the laws passed by Israel were the latest move in an ongoing campaign to "discredit" and "de-legitimise" UNRWA and its work in Gaza.
"These bills will only deepen the suffering of Palestinians, especially in Gaza where people have been going through more than a year of sheer hell," he wrote on social media.
Caritas Australia's humanitarian emergencies lead Sally Thomas said there was already too little aid getting into Gaza through Israeli check points, with the number of trucks entering each day down to 29 from about 500 a day before the conflict began.
The Greens have repeated their calls for Israel to face sanctions.