Australia supports the creation of a sustainable ceasefire in the Gaza Strip but Hamas must give up its weapons, Prime Minister Anthony Albanese has said in a joint statement with his counterparts from New Zealand and Canada.
"We are alarmed at the diminishing safe space for civilians in Gaza," the statement released on Wednesday said.
"The price of defeating Hamas cannot be the continuous suffering of all Palestinian civilians."
Anthony Albanese, New Zealand Prime Minister Chris Luxon and Canadian Prime Minister Justin Trudeau also said any ceasefire "cannot be one-sided".
"Hamas must release all hostages, stop using Palestinian civilians as human shields and lay down its arms," they said.
The three leaders condemned "Hamas' unacceptable treatment of hostages" and called for the immediate and unconditional release of the captives.
The Australian and Canadian governments both consider Hamas a terrorist organisation while New Zealand authorities have designated the entity's military wing a terrorist group.
The joint statement condemned Hamas' attack on Israel on October 7 and the "heinous acts of violence perpetrated in those attacks, including sexual violence", after militants killed 1200 people and took more than 200 hostages.
The three governments recognised Israel's right to defend itself.
There was also "no role for Hamas in the future governance of Gaza", the leaders said while opposing "the forcible displacement of Palestinians from Gaza, the re-occupation of Gaza, any reduction in territory and any use of siege or blockade" and backed a two-state solution.
Foreign Minister Penny Wong is expected to visit Israel and other countries in the Middle East in January.