‘Matter of When, Not If’: Chalmers Backs Palestinian State Recognition

Treasurer says recognition will come with strict conditions—no role for Hamas, hostages must be freed, and steps toward peace must be taken.

Australia Treasurer Jim Chalmers attends a press conference in parliament house in Canberra, Australia, on July 8, 2025. David Gray/AFP via Getty Images

Treasurer Jim Chalmers has become the first federal minister to publicly endorse the recognition of a Palestinian state, declaring it is a matter of “when, not if.”

Chalmers said the Labor government sees recognition as a crucial step toward a two-state solution.

However, Australia’s support would be contingent on key conditions.

“We need to make sure that there’s no role for Hamas in any future leadership. We need to make sure that the hostages are released,” he told Sky News Australia on July 31.

His remarks came shortly after Canadian Prime Minister Mark Carney announced that Canada would recognise a Palestinian state at the U.N. General Assembly in September—becoming the third nation to do so after France and the UK.

Like Australia, Canada also attached strict conditions to its support, including demilitarisation and the release of hostages.

Internal Labor Pressure Builds

Despite Chalmers’ remarks, Prime Minister Anthony Albanese and Foreign Minister Penny Wong have stopped short of committing to a clear timeline, insisting that key barriers must be addressed first.

Chalmers defended this cautious approach, saying, “There are good reasons why the prime minister didn’t put a timeframe on it … we want to see those obstacles overcome.”

Labor backbencher Ed Husic has taken a tougher stance, arguing that the time for recognition is now.

After losing his cabinet post post-election, Husic has grown increasingly vocal on Gaza, telling Sky News that the situation has become more urgent.

“Every month seems to be more horrific than the last,” he said, pointing to shifting circumstances on the ground. He said France’s decision opened the door for Australia to act decisively.

Greens Push for Immediate Action

The Greens have also called on the Albanese government to move quickly, urging it to join allies in recognising Palestine and increasing pressure on Israel through sanctions.

The party has long supported the move, presenting a motion in Parliament to recognise Palestinian statehood in May 2024.

Recognition Before Peace Is ‘Counterproductive’

Liberal Senator James Paterson has rejected the idea of Australia unilaterally recognising a Palestinian state, warning it would undermine decades of bipartisan foreign policy.

“If the Australian Government was to make a similar move, I wouldn’t agree with it, because it would be a significant departure from decades of bipartisan foreign policy in this country,” he told ABC radio.

He argued that such recognition should only follow a negotiated peace deal, not precede it. He said Australia’s position has long been that a two-state solution must be the outcome of peace negotiations.

“Premature recognition of a Palestinian state—before Hamas has been dismantled, before the Palestinian Authority recognises Israel’s right to exist, before they give up their aims of using terrorism to abolish the Israeli state—I think would be extremely counterproductive,” he said.