An extraordinarily bitter back-and-forth between Australian and Israeli leaders has put the nations' relationship at a historic low, experts and observers warn.

Australia has hit back at Israel with a government minister saying, ‘strength is not measured by how many people you can blow up'.

While Israel's prime minister has criticised Australia's decision on Palestinian statehood — even calling Anthony Albanese a "weak" leader — experts say this kind of treatment is far from unusual.

Israel's foreign minister said on Monday he had revoked the visas of Australian diplomats to the Palestinian Authority, following a decision by Canberra to recognise a Palestinian state and cancel an Israeli lawmaker's visa.

In an escalating international dispute, Israel launched a series of diplomatic attacks against several of its Western allies as they prepare to recognize a Palestinian state next month.

Australia's relationship with Israel is "the worst it has ever been" after the Netanyahu government revoked visas for Australian representatives to the Palestinian Authority.

Australia’s Home Affairs department misconstrued a statement by MK Simcha Rothman to ban him, claiming he called Gazan children "enemies", Sky News reveals. The full transcript shows he was advocating for refugees to be taken in by other nations.

Another Israeli source said all captives must be freed for the war to end; Benjamin Netanyahu’s scathing letter to Anthony Albanese revealed. Follow live.