Labor's position on Palestine is a bit complex. They are actually Pro-Palestine, Australia just voted at the UN in support of a motion to make the PA a member. They're trying to play the risky game of appeasing both parts of the community, as they have seats in both Islamic and Jewish dense regions. They might lose both sides playing this game though. For whatever reason the Pro-Israel voice seems to have more influence while the Pro-Palestine voice gets tossed to the side. This is weird in the context of the 2021 census:

Which marks the Jewish section of the community as near negligible, but what really matters is what the rest of the community thinks. Murdoch has chosen Israel, and thus have the LNP. The Greens have chosen Palestine. Personally if you don't support the coexistence of Israel and Palestine, I'd vote for either of those parties.

We should also note that Australia has very little power to influence international events and the LNP are clearly using this as a distraction to win votes due to their woeful domestic policies. But it is morally reprehensible to not try for a resolution. Israel do nothing for us and we should recognise Netanyahu as a terrorist alongside HAMAS