By Kat Wong and Tess Ikonomou in Canberra

Australia has officially recognised the state of Palestine, marking a shift in long-standing foreign policy, as Anthony Albanese walks a fine diplomatic line with the nation’s most important security ally.

Australia, the UK and Canada’s recognition of Palestinian statehood came into effect from Sunday night after the prime minister arrived in the US for a long-awaited United Nations General Assembly meeting.

The three countries have joined more than 140 United Nations member states that recognise Palestine in a bid to build momentum for a two-state solution as humanitarian suffering in Gaza worsens.

“Australia recognises the legitimate and long-held aspirations of the people of Palestine to a state of their own,” Mr Albanese and Foreign Minister Penny Wong said in a joint statement.

“Today’s act of recognition reflects Australia’s longstanding commitment to a two-state solution, which has always been the only path to enduring peace and security for the Israeli and the Palestinian peoples.”

The first steps towards a two-state solution must be a ceasefire in Gaza and the release of hostages taken by the designated terror group Hamas on October 7, 2023, the leaders said.

They reiterated that Hamas, which de facto governs Gaza, must have no role in a Palestinian state.

Palestine’s Ambassador to the UN, Riyad Mansour, urged nations to look at the “whole package” for statehood and to be “fair” by not focusing on individual sticking points.

In accordance with requirements set by Australia, the Palestinian Authority – which runs the West Bank – has recognised Israel’s right to exist and committed to holding democratic elections and enacting finance, governance and education reforms.

“We want to see a ceasefire. We want to see the hostages released,” Mr Albanese told ABC TV on Monday (AEST) from New York.

“We want to see a breakthrough in a longer-term solution, an end to this cycle of violence.”

The Executive Council of Australian Jewry expressed its “dismay” at the move, pointing to Australia’s past practice of recognising new states after their governments had demonstrated the ability to control their territory and deliver on international commitments.

“There is no Palestinian entity that comes close to meeting these criteria,” president Daniel Aghion KC said.

The Jewish Council of Australia said the government must ensure recognition was not “merely symbolic”.

Israeli Prime Minister Benjamin Netanyahu condemned recognition, saying on X that the leaders were giving a “reward to terrorism”.

“And I have another message for you: It’s not going to happen. There will be no Palestinian state to the west of the Jordan River.”

Mr Albanese earlier was under pressure from allies of US President Donald Trump not to recognise Palestine.

A group of Republican Congress members penned an open letter to Mr Albanese and his French, Canadian and UK counterparts, warning proceeding with recognition would “put your country at odds with long-standing US policy and interests and may invite punitive measures in response”.

Mr Albanese is yet to secure a meeting with Mr Trump but a bilateral discussion is still on the cards, as Australia seeks assurances on the AUKUS trilateral defence agreement and an easing in tariffs on Australian goods imported to the US.

But recognition could be a point of contention if the two come face-to-face during Mr Albanese’s US trip.

The coalition has also condemned the move and claimed recognition would strengthen Hamas’s credibility.

“Today, the Albanese government extends a hollow gesture of false hope to the Palestinian people,” Opposition Leader Sussan Ley said.

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