Why Australia Is So Deeply Aligned with Israel (and Why It Matters)
Australia's alignment with Israel goes far beyond diplomacy—it’s enmeshed in innovation, security, economic strategy, and shared values.
1. A Longstanding Historical Foundation
Australia was among the first countries to recognize Israel in 1949 and even presided over its admission to the UN .
Our shared military history stretches back to World War I, with Australian Light Horse units playing key roles in battles like Beersheba .
2. Innovation, Trade & Investment
Israel’s advanced tech ecosystem complements Australia’s ambitions: Israel ranks among the top per capita for startups and NASDAQ-listed companies .
In 2023 two-way trade reached approx. A$1.4 billion. Israeli investment in Australia exceeded A$5.5 billion, while Australian investment in Israel was around A$1.7 billion .
Israel has become the third-largest source of foreign company listings on the ASX .
3. Strategic Cooperation in Security & Tech
Our governments have created lasting frameworks for collaboration:
The Innovation Landing Pad in Tel Aviv (since 2016)—a launchpad for Aussie startups in Israel .
A Technological Innovation Cooperation Agreement signed in 2017, plus MOUs strengthening cyber, defence, and aviation security ties .
4. People-to-People and Cultural Bonds
There are around 11,000 Israel-born Australians, predominantly in NSW and Victoria, linking diverse communities .
A vibrant Australian-Jewish community (nearly 100,000) also fosters strong people-to-people links .
5. But the Relationship Is Now Straining…
In August 2025, Canberra’s decision to recognize a Palestinian state—driven by shifting public sentiment and the ongoing Gaza conflict—sparked one of the deepest diplomatic rifts in decades .
Israeli Prime Minister Netanyahu publicly criticized Australia’s move, calling Prime Minister Albanese “weak” .
Adding to the tension, Israel revoked visas for some Australian diplomats in retaliation—and the strain is being felt within Australia’s Jewish community .
Amid these developments, voices like AIJAC’s are stressing the need to rebuild this historically rich relationship .
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Bottom line:
Australia’s closeness with Israel stems from more than diplomatic convenience—it's reinforced by deep tech partnerships, sizeable investments, shared strategic goals, and enduring cultural ties. But international geo-political shifts—especially in the Middle East—are testing this alliance like never before.