Prime Minister Anthony Albanese has swerved questions about Donald Trump's extraordinary declaration he intends to forcibly relocate the people of Gaza and "level the site".
Mr Albanese restated Australia's "longstanding" support for a two-state solution but repeatedly refused to offer a view on Mr Trump's remarks.
"I'm not going to, as Australia's prime minister, give a daily commentary on statements by the US president. My job is to support Australia's position," he told reporters at Parliament House on Wednesday.
"I'll tell you what Australians will be concerned about: they're concerned about Medicare, they're concerned about education … I'll continue to engage in that.
"What we do is we take considered positions when matters of international affairs are raised, and we do so in a manner that is consistent with Australia's values."
In a White House press conference a short time earlier, Mr Trump stood beside Israeli Prime Minister Benjamin Netanyahu and pledged to "take over" Gaza, raze it and rebuild it, relocating its residents to neighbouring countries to "live in comfort and peace".
The announcement, which did not include specifics, would likely be a violation of international law. It was welcomed in glowing terms by Mr Netanyahu, but immediately denounced by Saudi Arabia.
Mr Albanese said Australia had not received any US request to participate in "the rebuilding of Gaza".
"We've supported a ceasefire, we've supported hostages being released and we've supported aid getting into Gaza. Australia is willing to assist aid getting into Gaza. We have done so. That is what is consistent with what Australians have always done."
Asked on multiple occasions whether he would condemn the significant shift in US policy, Mr Albanese declined.
"The Australian position is the same as it was this morning, as it was last year, as it was 10 years ago, as it was under the Howard government," Mr Albanese said.
"Australia played, historically, a very important role in the creation of the state of Israel. It's something that … governments consistently since then have supported.
"But those governments have also supported what happened then, which was the creation of two states, not just one, and that remains my position, and it has been a bipartisan position up to this point."
Take Trump seriously, not literally, says Liberal Dave Sharma
Asked about Mr Trump's latest remarks, the Coalition's assistant foreign affairs spokesperson Julian Leeser also said he did not "intend to provide a running commentary".
"President Trump has put forward an idea today. It's not an idea that we've put forward," he said.
Liberal senator Dave Sharma, a former Australian ambassador to Israel, said there were some "positive" elements from the president's press conference.
"Donald Trump said a number of things. One was that he doesn't want to see the cycle of violence repeated … Secondly that he wants to see the Palestinian people have a better future, he wants to see Israelis allowed to live in security.
"And finally he wants the Arab world to play more of a role in helping to secure a peace in the region.
"Now, what he's said about US ownership or control of Gaza, at the moment, we would need to see more details about what he has in mind. But something Trump's team often says about him is take him seriously but don't necessarily take him literally, and that would be the sort of mantra I'd adopt here."
Senator Sharma added he did not think Trump had "expressly disavowed a two-state solution. In fact, he spoke quite positively about giving the Palestinian people a better hope …"
"As for what is the sovereign-like entity that encompasses that, that is something we would need to have further explained … [But] I think we all recognise that [Trump's] first position is not always where US policy ends up."
He restated the Coalition's support for "a negotiated two-state solution" and said it was "a constructive suggestion" that neighbouring Arab countries should play a greater role in a peace.
"The Arab world rejected the creation of the state of Palestine back in the 1940s … Countries that share a border with Israel, including Egypt and Jordan, [could] play a more active role in resolving this conflict, even if that doesn't mean doing what [ Mr Trump] has proposed they do."
Greens leader Adam Bandt said Mr Trump's announcement was "proof" that a Trump presidency was "a threat to peace and democracy".
"This is the end of international law. This is Donald Trump talking about the takeover of another country, potentially by force. The Australian government must make clear that it opposes a clear violation of international law.
"Whatever one thinks about the situation in the conflict in the Middle East, this is clearly wrong. Australia also unfortunately has a very poor record in the past of simply following the United States into conflict."
The Australian Federation of Islamic Councils on Wednesday "unequivocally condemned" Mr Trump and Mr Netanyahu's comments.
"The conversations about annexing Gaza are unacceptable and catastrophic. They disregard international laws and the fundamental rights of the Palestinian people," president Rateb Jneid said.
"We call on the Australian government to respond with more than mere disapproval. It is time for Australia to unconditionally recognise the state of Palestine and oppose any actions that undermine its sovereignty."
Daniel Aghion, president of Jewish lobby group the Executive Council of Australian Jewry, said Gazans should have a say in whether they remain in Gaza.
"We favour the comprehensive reconstruction of Gaza as a peaceful, prosperous territory," he said, adding Hamas would "first need to be completely dismantled and have no role in the administration or governance of Gaza".
"However, the question of whether some Gazans choose to remain in the territory through this process, temporarily relocate or are permanently absorbed by neighbouring states is ultimately a decision for those affected, most of all, Gaza's civilian population."
Former Labor senator Fatima Payman said the prime minister was not acting.
"Here in Australia, the Albanese Labor government is doing absolutely nothing. But sure, let's keep pretending the US is the best country to protect us, makes total sense," Senator Payman said on social media.
The Australia's prime minister restated Australia's "longstanding" support for a two-state solution but repeatedly refused to offer a view on Mr Trump's remarks. "I'm not going to, as Australia's prime minister, give a daily commentary on statements by the US president. My job is to support Australia's position," he told reporters at Parliament House on Wednesday (Read more at ABC News).