A motion to “recognise the State of Palestine” by the Greens has been blocked by Parliament, 80 votes to five.
The motion, introduced to the House of Representatives on Wednesday, was described by Greens leader Adam Bandt as a “concrete step towards peace.
The move would have aligned Australia with other countries which have recently recognised Palestine.
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Speaking to parliament, Mr Bandt said, “It is a critical step towards peace and towards ending the slaughter that we are seeing with the invasion of Gaza right now”.
“It is time for countries, including Australia, to step in and do something, and just as other countries have made it a priority to recognise the state of Palestine, so should this government today.”
The motion came with backlash from Assistant Foreign Minister Tim Watts, who said the Greens deliberately set up the vote to fail.
He said to parliament the Greens used the motion as a wedge on the issue.
“Wedge politics only divides the community. We gain nothing from the Greens seeking to reproduce this conflict in our own community,” he told parliament.
“If they were sincere, the Greens would have something of substance to say about ending the cycle of violence and achieving lasting peace.”
The motion was brought forward after an Israeli airstrike killed at least 21 people at a tent camp in Rafah, according to Gaza health authorities. It also left at least 60 people injured.