The Labor Friends of Palestine group has written to Foreign Minister Penny Wong calling for Australia to join a coordinated approach with allied countries, in line with changes to the party's national platform agreed in July. The letter, sent on Wednesday, urges a stronger response amid escalating violence in the occupied West Bank.
Australia is preparing new targeted sanctions against Israeli settlers but has declined to follow the UK, Canada and France in imposing a blanket ban on trade with Israeli settlements. Wong has expressed concerns about the scope of the broader bans announced by those countries.
Overnight, the UK government issued its strongest condemnation yet of Israel's occupation. Foreign Secretary Ed Miliband said his government agreed there was "ethnic cleansing of Palestinians in areas of the West Bank, perpetrated by settler terrorists" and described efforts to control the territory as unlawful.
Israel has reacted with fury to the UK sanctions, with analysts linking Prime Minister Benjamin Netanyahu's fierce retaliation to his tough re-election campaign.
Australia has previously imposed targeted sanctions on specific individuals involved in settler violence but has resisted broader measures that would restrict trade with settlements as a whole.