On The Ground newsletter: Get a weekly dispatch from our international correspondents Get a weekly dispatch from our international correspondents Get a weekly international news dispatch Email * SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our Privacy notice

Australian prime minister Anthony Albanese said his Israeli counterpart Benjamin Netanyahu was in “denial” about the unfolding humanitarian crisis in Gaza caused by his nearly two-year-long war on the Palestinian territory.

Mr Albanese’s criticism came a day after he announced Australia would recognise a Palestinian state at next month’s UN General Assembly. Australia is the latest member of the G20 after France, the UK and Canada to declare it will recognise a Palestinian state if certain conditions are met.

The acknowledgement was “predicated on commitments Australia has received from the Palestinian Authority”, Mr Albanese said. Those commitments included no role for Hamas in a Palestinian government, demilitarisation of Gaza and the holding of elections, he said.

The Israeli leader last week approved a widely criticised plan to occupy Gaza City claiming that he had no choice but to “complete the job” and defeat Hamas.

Mr Albanese said Israel’s reluctance to listen to its allies contributed to Australia’s decision to recognise a Palestinian state. “He again reiterated to me what he has said publicly as well which is to be in denial about the consequences that are occurring for innocent people,” the prime minister told public broadcaster ABC, recounting a Thursday phone call with Mr Netanyahu.

Australia’s decision to recognise a Palestinian state is conditional on “commitments received from the Palestinian Authority” that Hamas will have no role in any future state.

Mr Albanese argued on Monday that a two-state solution was the best hope to break the cycle of violence and end the suffering and starvation in Gaza.

Displaced Palestinians carry food parcels from trucks carrying humanitarian aid in Khan Yunis, southern Gaza, on 9 August 2025 ( AFP via Getty )

Mr Netanyahu, addressing a rare press conference, called Australia’s plan to recognise a Palestinian state “shameful” even before Mr Albanese had publicly announced it.

“To have European countries and Australia march into that rabbit hole, just like that, fall right into it and buy this canard is disappointing, and I think it’s shameful,” he said. “It is not going to change our position. Again, we will not commit national suicide to get a good op-ed for two minutes.”

Mr Albanese previously seemed wary of dividing public opinion in the country, which has significant Jewish and Muslim minorities, by taking a firm position on the issue of recognising a Palestinian state.

But public mood shifted sharply after Israel said it planned to militarily occupy Gaza, prompting tens of thousands of demonstrators to march across Sydney’s Harbour Bridge this month and call for sending humanitarian aid into the besieged Palestinian territory.

Israel’s ambassador to Australia on Monday criticised Canberra’s decision claiming that it undermined Israel’s security.

“By recognising a Palestinian state while Hamas continues to kill, kidnap and reject peace, Australia undermines Israel’s security, derails hostage negotiations, and hands a victory to those who oppose coexistence,” Amir Maimon said in a statement.

New Zealand this week announced it was considering recognising a Palestinian state and prime minister Christopher Luxon’s cabinet would make a formal decision in September.

“New Zealand has been clear for some time that our recognition of a Palestinian state is a matter of when, not if,” foreign minister Winston Peters said.

Nearly 150 of the 193 members of the UN have already recognised Palestinian statehood, most of them decades ago.

The US and other Western countries have held off, saying that Palestinian statehood should be part of a final agreement resolving the Middle East conflict.

Israel’s war and siege on Gaza has killed over 61,400 people thus far, left almost the entire the Palestinian territory in ruins, displaced most of its 2.2 million people and caused widespread starvation, according to the health ministry in the Hamas-run Strip and international aid groups.

Israel launched a ground and air assault on Gaza after some 1,200 people were killed and 251 abducted during a Hamas attack on southern Israel in October 2023.

Most of the hostages have since been freed under ceasefire or other deals, but 50 remain in Gaza. Israel believes around 20 are still alive.

STORY: :: August 12, 2025

:: Australia’s Albanese says Netanyahu is ‘in denial’ about the humanitarian situation in Gaza

:: Melbourne, Australia

:: Anthony Albanese, Australian Prime Minister

“The decisions of the Netanyahu government, firstly the stopping of aid that we’ve seen and then the loss of life that we’re seeing around those aid distribution points, where people queuing for food and water are losing their lives, is just completely unacceptable. And we have said that. I spoke with Prime Minister Netanyahu. He again reiterated to me what he has said publicly as well, which is to be in denial about the consequences that are occurring for innocent people.”

Advertisement Advertisement

Advertisement Advertisement

:: Australia says it will recognize a Palestinian state at the UN General Assembly in September

“There has been too many innocent lives lost, both Israelis and Palestinians, and the world is saying, we need a solution to this conflict. We need to end the cycle of violence. And the way to do that is to have a two-state solution with a demilitarized Palestinian state where Hamas, of course, have no role to play in that, and a secure Israel as a state which is recognized by the states around it.”

Australia will recognize a Palestinian state at next month’s United Nations General Assembly, Albanese said on Monday, a move that adds to international pressure on Israel after similar announcements from France, Britain and Canada.

Albanese said on Tuesday the Netanyahu government’s reluctance to listen to its allies contributed to Australia’s decision to recognize a Palestinian state.

Australia’s decision to recognize a Palestinian state is conditional on commitments received from the Palestinian Authority, including that Islamist militant group Hamas would have no involvement in any future state.

From 3h ago 06.59 BST Westpac and CBA pass on rate cut Westpac, the Commonwealth Bank and Macquarie have all announced they will pass on today’s interest rate cut to their customers. Westpac said it was going to pass on the -0.25% rate adjustment to its variable home loan interest rates effective Tuesday, 26 August. The Commonwealth Bank says all home loan variable rate changes relating to today’s rate cut will be effective 22 August 2025. Macquarie, meanwhile, says the cut will hit its variable home loan rates just three days from now, on Friday 15 August. 2:26 RBA interest rates: Reserve Bank of Australia cuts official cash rate to 3.6% – video Share Updated at 08.25 BST

2h ago 08.34 BST What we learned, Tuesday 12 August And that’s where we’ll leave you this evening. Here’s a snapshot of today’s headlines: Anthony Albanese claimed Israel’s leader, Benjamin Netanyahu, is “in denial” about the suffering of civilians in Gaza, and said frustration with Israel’s actions partly contributed to the decision to recognise a Palestinian state.

Opposition leader Sussan Ley says the Coalition would revoke recognition of a Palestinian state and would “never have taken this step” of recognising a Palestinian state if they were in power.

The Reserve Bank has cut the cash rate by a quarter of a percentage point to 3.6% , from 3.85% .

Treasurer Jim Chalmers hailed the rate cut as “very welcome relief for millions of Australians”.

Westpac, the Commonwealth Bank and Macquarie have all announced they will pass on today’s interest rate cut to their customers.

Voters in Kiama, NSW, will head to the polls next month for a byelection to replace former MP Gareth Ward .

Epic Games , the creator of the popular video game Fortnite, has won a partial victory against Apple and Google in the Australian federal court over the restrictions in their app stores and in-app payment options.

The health effects of Pfas appear to be small, the NSW Health Expert Advisory Panel on Pfas has concluded in its final report.

The AFL has announced that American rapper Snoop Dogg will grace the MCG for this year’s grand final entertainment. Thanks for your company today. Nick Visser will be back with you bright and early tomorrow morning to bring you all of Wednesday’s news. Look after yourselves until then. Share Updated at 08.40 BST

2h ago 08.22 BST Man dies in snowboarding accident A person has died at Perisher Ski Resort in the Snowy Mountains today, Guardian Australia understands. Early reports suggest a man died after a snowboarding accident this afternoon. Emergency services are yet to comment on the incident. Share Updated at 08.26 BST

2h ago 07.54 BST Chalmers has also taken a swing at shadow treasurer Ted O’Brien’s comments earlier: I did not think [the Coalition] could find someone with less credibility than Angus Taylor but they’ve managed to do that in shadow treasurer Ted O’Brien. I thought it was frankly an absurd comment that will do him no good and to his credibility no good … I thought his press conference today was a disgrace, frankly. He should be properly welcoming interest rate relief for millions of Australians. He did not want to see rates cut today and I think all of his words today were dripping with disappointment that rates were cut today for the third time this year under Labor. Share Updated at 08.08 BST

2h ago 07.50 BST The treasurer, Jim Chalmers, said the “productivity challenge” in Australia “is structural” and has been an issue in the economy for two decades, after the RBA substantially revised its productivity assumption in its statement of monetary policy today, prompting a lot of questions. Chalmers said: Overwhelmingly we have been making good progress in our country but there are elements of the data which are concerning … Our economy is not growing as strongly as we would like it to and one of the big persistent structural issues we have had in an economy now for two decades is it is not productive enough and productivity matters because it is the main driver of living standards so that workers … can get ahead and provide for their loved ones. … Certainly, there has been obvious for some time that we don’t have the productivity growth that we need in order to make the economy grow strongly and sustainably over time … It’s not a surprise that we have a productivity challenge, it was one of the defining features of the last decade of our predecessors and remains a challenge in our economy and remains a primary focus of our efforts. Share Updated at 07.54 BST

3h ago 07.40 BST AGNSW explains ‘needs to make ongoing savings’ The Art Gallery of New South Wales has released a statement this afternoon regarding reports it was set to cut dozens of jobs as part of a restructure effort meant to save millions in annual expenditure. A spokesperson for AGNSW said: Like all cultural institutions, the Art Gallery of New South Wales must respond to the changing environment, stay within its budget and operate sustainably. To do this the art gallery needs to make ongoing savings and plan for the future. The art gallery has begun staff consultation on a proposed structure to ensure resources are aligned with government priorities. The proposed organisational change reflects our operational requirements, future programming and ambitions for the art gallery, its collections and its audiences. The wellbeing of staff is the art gallery’s top priority, and we’re committed to supporting our people throughout this process. Share Updated at 07.50 BST

3h ago 07.32 BST Recognition of Palestine makes creation of state ‘less likely’ Paterson says The Albanese government’s decision to recognise the state of Palestine has “pushed back the prospect” of the state ever being created, Liberal senator James Paterson has said. He told Afternoon Briefing: The Albanese government’s decision to recognise a Palestinian state is not the same as the creation of a Palestinian state; that would require the agreement of Israel. I think what the government has done has made that even less likely than it ever has been, they’ve pushed back that prospect, it’s an incredibly remote one. Asked if the Coalition would revoke that recognition, Paterson said: Yes, just as this government revoked the previous government’s recognition of West Jerusalem as Israel’s capital; new governments elected on a different political philosophy can change our foreign policy, and we would change it. Share Updated at 07.35 BST

3h ago 07.24 BST Fortnite creator scores some wins in major case against Apple and Google Josh Taylor

Epic Games, the creator of the popular video game, Fortnite, has won a partial victory against Apple and Google in the Australian federal court over the restrictions in their app stores and in-app payment options. Fortnite was kicked off the Apple and Google app stores in 2020 after Epic Games offered its own in-app payment system that bypassed the one used by the platforms, and cut out the fees Apple and Google receive for in-app payments.

Fortnite sued the two companies in Australia and other jurisdictions as a result. In the Australian case, Epic alleged that Apple’s control over in-app purchases in the Fortnite app were a misuse of market power, which had substantially lessened competition in app development. The company alleged Google harmed app developers and consumers in Australia by preventing choice over app distribution and in-app payments on Android devices. View image in fullscreen Fortnite was kicked off the Apple and Google app stores in 2020 after Epic Games offered its own in-app payment system that bypassed the one used by the platforms. Photograph: Volodymyr Kalyniuk/Alamy Federal court justice Jonathan Beach found Apple had engaged in conduct likely to diminish competition over preventing side-loading of apps on iOS, and by preventing alternative payment methods for digital purchases. For Google it was found for the similar Google Play billing system, and over Google’s Project Hug, a project that allegedly saw developers enticed to keep their apps in the Play Store.

Other claims from Epic did not succeed. Two class action cases arguing that Apple and Google overcharged developers for in-app payments were successful, but the difference in what they would have otherwise charged had there been more competition will be decided later. Beach spent an hour and a half reading through a summary of his reasons in the four cases. The full judgment – expected to be around 1,000 pages long to cover all cases – will not be released until redactions are made. Orders on relief will be decided at a later date once lawyers for all parties have had time to digest the ruling. Share Updated at 07.40 BST

3h ago 07.22 BST Shadow finance minister, Liberal James Paterson, has told ABC’s Afternoon Briefing that he believes the reason so many journalists were asking RBA governor Michele Bullock about productivity, rather than the interest rate reduction, was because “the government has admitted this is a problem”. Paterson said: They have recognised it is a problem because it is so closely linked to living standards and living standards did fall over the government’s first term, as did productivity – in fact we went back to 2016 levels of productivity growth. So that is a crisis for our living standards, for our wealth as a country, and we will go backwards unless we fix this. And the fact that the RBA has lowered their expectations for productivity growth is effectively a vote of no confidence in the government’s economic agenda, they have no a plan to fix this problem and I hope they can come up with one at their round-table but I am really worried they won’t. Share Updated at 07.37 BST

3h ago 07.14 BST Tom McIlroy Labor signals plan for road-user charging rules The treasurer, Jim Chalmers, has signalled Labor could move forward with a plan for road-user charging rules as soon as next week’s productivity roundtable, saying Labor had flagged such a change before the federal election. Labor has been working on plans for charges to cover electric vehicles with state and territory governments ahead of the three-day summit in Canberra next week. Budget revenue collected from fuel excise has been falling as drivers increasingly shift to electric vehicles. Victoria designed rules for a 2c per kilometre charge on EV users in a 2023 plan, but the tax was overruled by the high court. The prime minister, Anthony Albanese, said last week the government was only considering immediately moving forward with tax plans considered by voters ahead of the 3 May election. Chalmers said on Tuesday road-user charging met that standard, because the government had flagged its plans in the last parliament: We said before the last election that this was an area we’re working on with the states and territories and in parts of our political opposition, there’s a sense of bipartisanship as well in dealing with this challenge. Really for at least a year or two, we have said publicly that this is on the agenda, and so we will continue that work. He said he expected state treasurers to raise road-user charging rules at a meeting on Friday, billed as a lead in meeting for next week’s roundtable. Share Updated at 07.20 BST

3h ago 06.59 BST Westpac and CBA pass on rate cut Westpac, the Commonwealth Bank and Macquarie have all announced they will pass on today’s interest rate cut to their customers. Westpac said it was going to pass on the -0.25% rate adjustment to its variable home loan interest rates effective Tuesday, 26 August. The Commonwealth Bank says all home loan variable rate changes relating to today’s rate cut will be effective 22 August 2025. Macquarie, meanwhile, says the cut will hit its variable home loan rates just three days from now, on Friday 15 August. 2:26 RBA interest rates: Reserve Bank of Australia cuts official cash rate to 3.6% – video Share Updated at 08.25 BST

3h ago 06.52 BST The Reserve Bank has been watching the housing market, Michele Bullock said, due to monetary policy’s direct influence on it. View image in fullscreen Reserve Bank of Australia governor Michele Bullock at a press conference in Sydney today. Photograph: Dan Himbrechts/AAP So far, she said, the easing in the housing market that they have observed has been a “fairly gradual recovery in housing activity”: Broadly, housing prices, dwelling investment, those sorts of things … We hope it happens in a nice measured way, but ultimately we don’t forecast property prices. We can’t control what happens there because I think as I’ve said before, the price, the property prices are about supply and demand, ultimately, in the housing market, and we don’t control that. But we do know that historically, as interest rates fall, then activity in the housing market picks up. That’s exactly what we’d expect. And it is one of the channels through which monetary policy works. Share Updated at 06.57 BST

4h ago 06.44 BST A few questions for Bullock at this press conference around the RBA’s assumptions around productivity. She reiterates a few times that the RBA only makes assumptions about productivity for a two-year forecast period – as in, they assume but don’t model it – and it is not an assumption about productivity in the long run. Bullock says addressing productivity (or lack thereof) is not the job for the Reserve Bank but for the government: Breaking out of the productivity slowdown is a matter for the government that they are taking on. They’re looking at what they can do. Businesses are looking at what they can do to take themselves out of the productivity slump. There’s nothing the Reserve Bank can do. All the Reserve Bank can do is make sure we have low and stable inflation, and if we have full employment, both of those things are very stable environments for businesses to think about how they might improve productivity, how they might produce more for the same amount of labor and capital input. So nothing we can do about it. But the government recognises it’s a big issue and they are tackling it. Share Updated at 06.52 BST

12th August 2025 – (Canberra) Australian Prime Minister Anthony Albanese has accused Israeli Prime Minister Benjamin Netanyahu of being “in denial” regarding the plight of civilians in Gaza. This statement comes a day after Albanese announced Australia’s intent to formally recognise a Palestinian state during the upcoming 80th session of the United Nations General Assembly in September.

Speaking to the Australian Broadcasting Corporation (ABC) on Tuesday, Albanese acknowledged that frustration with the actions of Netanyahu’s government played a significant role in this historic decision. He revealed that he had communicated with Netanyahu the previous Thursday to inform him of Australia’s stance on Palestinian statehood.

“He reiterated to me what he has said publicly, which reflects a denial about the consequences for innocent people,” Albanese stated, commenting on Netanyahu’s response. He highlighted the unacceptable impact of the Netanyahu government’s decisions, particularly the cessation of aid, which has resulted in loss of life at aid distribution points where civilians are queuing for food and water.

During a press conference at Parliament House in Canberra on Monday, alongside Foreign Affairs Minister Penny Wong, Albanese described the recognition of Palestine as part of a global effort to foster momentum towards a two-state solution. He expressed hope that this decision would be seen as Australia’s contribution to breaking the “cycle of violence” in the region.

Australian prime minister Anthony Albanese said his Israeli counterpart Benjamin Netanyahu was in “denial” about the unfolding humanitarian crisis in Gaza caused by his nearly two-year-long war on the Palestinian territory.

Mr Albanese’s criticism came a day after he announced Australia would recognise a Palestinian state at next month’s UN General Assembly. Australia is the latest member of the G20 after France, the UK and Canada to declare it will recognise a Palestinian state if certain conditions are met.

The acknowledgement was “predicated on commitments Australia has received from the Palestinian Authority”, Mr Albanese said. Those commitments included no role for Hamas in a Palestinian government, demilitarisation of Gaza and the holding of elections, he said.

Advertisement Advertisement

Advertisement Advertisement

The Israeli leader last week approved a widely criticised plan to occupy Gaza City claiming that he had no choice but to “complete the job” and defeat Hamas.

Mr Albanese said Israel’s reluctance to listen to its allies contributed to Australia’s decision to recognise a Palestinian state. “He again reiterated to me what he has said publicly as well which is to be in denial about the consequences that are occurring for innocent people,” the prime minister told public broadcaster ABC, recounting a Thursday phone call with Mr Netanyahu.

Australia’s decision to recognise a Palestinian state is conditional on “commitments received from the Palestinian Authority” that Hamas will have no role in any future state.

Mr Albanese argued on Monday that a two-state solution was the best hope to break the cycle of violence and end the suffering and starvation in Gaza.

Displaced Palestinians carry food parcels from trucks carrying humanitarian aid in Khan Yunis, southern Gaza, on 9 August 2025 (AFP via Getty)

Mr Netanyahu, addressing a rare press conference, called Australia’s plan to recognise a Palestinian state “shameful” even before Mr Albanese had publicly announced it.

Advertisement Advertisement

Advertisement Advertisement

“To have European countries and Australia march into that rabbit hole, just like that, fall right into it and buy this canard is disappointing, and I think it’s shameful,” he said. “It is not going to change our position. Again, we will not commit national suicide to get a good op-ed for two minutes.”

Mr Albanese previously seemed wary of dividing public opinion in the country, which has significant Jewish and Muslim minorities, by taking a firm position on the issue of recognising a Palestinian state.

But public mood shifted sharply after Israel said it planned to militarily occupy Gaza, prompting tens of thousands of demonstrators to march across Sydney’s Harbour Bridge this month and call for sending humanitarian aid into the besieged Palestinian territory.

Israel’s ambassador to Australia on Monday criticised Canberra’s decision claiming that it undermined Israel’s security.

Advertisement Advertisement

Advertisement Advertisement

“By recognising a Palestinian state while Hamas continues to kill, kidnap and reject peace, Australia undermines Israel’s security, derails hostage negotiations, and hands a victory to those who oppose coexistence,” Amir Maimon said in a statement.

New Zealand this week announced it was considering recognising a Palestinian state and prime minister Christopher Luxon’s cabinet would make a formal decision in September.

“New Zealand has been clear for some time that our recognition of a Palestinian state is a matter of when, not if,” foreign minister Winston Peters said.

Nearly 150 of the 193 members of the UN have already recognised Palestinian statehood, most of them decades ago.

Advertisement Advertisement

Advertisement Advertisement

The US and other Western countries have held off, saying that Palestinian statehood should be part of a final agreement resolving the Middle East conflict.

Israel’s war and siege on Gaza has killed over 61,400 people thus far, left almost the entire the Palestinian territory in ruins, displaced most of its 2.2 million people and caused widespread starvation, according to the health ministry in the Hamas-run Strip and international aid groups.

Israel launched a ground and air assault on Gaza after some 1,200 people were killed and 251 abducted during a Hamas attack on southern Israel in October 2023.

Most of the hostages have since been freed under ceasefire or other deals, but 50 remain in Gaza. Israel believes around 20 are still alive.