Australia has changed its position to support a UN resolution demanding "Israel bring to an end its unlawful presence in the Occupied Palestinian Territory as rapidly as possible".
The resolution, passed by the UN General Assembly, also calls for an end to all new settlement activities and for settlers to be removed from the occupied territory.
Australia was one of 157 nations that voted in favour of the resolution. Seven abstained, and eight voted against it, including the USA and Israel.
Australia has abstained from similar resolutions at past meetings of the General Assembly, including at a vote in September.
Since then, the International Criminal Court (ICC) has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former defence minister Yoav Gallant, which allege war crimes and crimes against humanity. Australia is a party to the ICC and has a legal obligation to arrest the men if they visit.
Australia's ambassador to the United Nations, James Larsen, said Australia had now returned to a position it held up until the year 2001.
He said that was a time "when the international community and the parties themselves came together to chart a path towards a two-state solution", and the vote "reflects our determination that the international community again work together to build momentum towards this goal".
The Occupied Palestinian Territory includes Gaza, which has been almost completely flattened by Israeli bombardment since the October 7 terror attack perpetrated by Hamas, and the West Bank. It also includes East Jerusalem.
The resolution also calls for a high-level international conference to be convened next year, aimed at implementing a two-state solution.
"A two-state solution remains the only hope of breaking the endless cycle of violence, the only hope to see a secure and prosperous future for both peoples," Mr Larsen told the General Assembly.
Ahead of the vote, a spokesperson for Foreign Minister Penny Wong said Australia had "few ways to move the dial in the Middle East", and its only hope was working with the international community.
"We don't always get everything we want," the spokesperson said. "But if, on balance, we believe the resolution will contribute to peace and a two-state solution, we will vote for it."
Deputy opposition leader Sussan Ley suggested Australia's change in position was "rewarding terrorists".
"We still have hostages in tunnels under Gaza," she told Sky News.
"We still have Hamas in the Gaza Strip, almost in control. And how is this not rewarding terrorists at this point in time?"
She also said the move was "not going to encourage that strong closeness that we need" with the US.
Australia also changed its position, from a "no" vote to abstention, on another resolution concerning Palestinian representation at the UN.
