Senator the Hon Penny Wong, Minister for Foreign Affairs
The Australian Government is announcing new support for recovery in Gaza and to strengthen the institutional foundations of the State of Palestine.
The package combines much-needed humanitarian assistance with support for reforms to governance, public institutions, and economic development, as part of coordinated international efforts to advance a two-state solution.
Working with likeminded partners and building on Australia’s recognition of the State of Palestine in September 2025, this package supports Palestinian-led efforts to strengthen public institutions, improve economic management and advance democratic governance, helping to build a stronger and more effective Palestinian Authority capable of responding to the needs of its people.
Targeted funding for early recovery and reforms includes $15 million to the UN Horizon Fund. The Horizon Fund brings UN agencies together to rehabilitate essential infrastructure, including water and sanitation, health, education, and housing, as well as debris clearance and explosive ordnance risk reduction.
Australia’s contribution complements more than $80 million pledged to the Horizon Fund by France, Germany, Italy, the Netherlands, Norway, Sweden, Switzerland, and the United Kingdom, reflecting a shared commitment to Gaza's recovery and the long-term conditions necessary for durable peace.
The package also includes $10 million to the World Bank's Palestinian Fund for Reconstruction and Development (PFRD) to strengthen the Palestinian Authority’s public financial management. The PFRD is supported by Japan, the United Kingdom, Canada, France, Sweden, Switzerland, and Iceland.
Strong, accountable and effective Palestinian institutions will be critical to future recovery efforts, regional stability and long-term prospects for peace. We will continue to work with partners to hold the Palestinian Authority to commitments it has made to Australia and the international community which include to reform governance, terminate prisoner payments, institute schooling reform, demilitarise and hold general elections.
Hamas continues to damage the prospects of a two-state solution and reject Israel’s right to exist. Australia remains unequivocal in its condemnation of Hamas, including for its atrocities on 7 October 2023 and its ongoing acts of terror. The Australian Government reaffirms that Hamas must disarm and play no role in the State of Palestine.
By supporting effective civilian governance and public administration, Australia is helping address the conditions that allow terrorism and extremism to take hold, while strengthening the institutions needed for long-term stability.
Funding will be delivered through trusted international partners with robust oversight, accountability, and safeguards to ensure Australian assistance is used for its intended purpose.
Quotes attributable to Foreign Minister Penny Wong:
"This package demonstrates Australia's practical commitment to Palestinian recovery, reform and institution-building. Hamas can play no role in the State of Palestine.
"A lasting peace requires legitimate governance, economic opportunity and security for both Palestinians and Israelis.
“Australia will continue to work closely with international partners to help create those conditions."
Quotes attributable to Minister for International Development Dr Anne Aly:
"The humanitarian needs of Palestinians remain immense, and communities will require sustained support to recover and rebuild. This funding package will complement our existing humanitarian assistance.
"This investment will help strengthen institutions, advance reform efforts and support communities as they work towards recovery and resilience.
"Australia's development assistance delivers practical outcomes for vulnerable people while supporting the governance and institutional reforms needed for long-term stability and prosperity."