PM personally believes synagogue attack was terrorism

A firebombing at a Melbourne synagogue fulfils a definition of terrorism, the prime minister believes, but official authorities have not yet labelled the incident as a terrorist attack.

Prime Minister Anthony Albanese has continued to condemn Friday's attack on Adass Israel Synagogue and said he personally believed it constituted an act of terror.

"People must be allowed to conduct their faith with peace and respect, and there is no place in Australia for anti-Semitism," he told reporters in Perth on Sunday

"Terrorism is something that is aimed at creating fear in the community, and the atrocities that occurred at the synagogue in Melbourne clearly were designed to create fear in the community and therefore, from my personal perspective, fulfil that definition of terrorism."

The incident has not officially been labelled as this requires a specific process, but Mr Albanese gave an assurance that Victorian Police would meet with their federal counterparts on Monday, where they are expected to come to a decision.

The federal government revealed it would provide an extra $32.5 million in funding over the next 18 months to improve measures to protect the Jewish community, after an initial round of support in October 2023.

Israeli Prime Minister Benjamin Netanyahu has linked the synagogue incident to the government's decision to support a non-binding United Nations resolution urging Israel to "end its unlawful presence in the Occupied Palestinian Territory as rapidly as possible".

Opposition Leader Peter Dutton claims the government had not done enough to address anti-Semitism and has repeatedly described the firebombing as a terrorist attack.

"(Mr Albanese) believes that by not taking a strong stance in relation to anti-Semitism, that somehow will deliver him political benefit," he told reporters in Tasmania.

"We've now got armed guards at Jewish schools, places of gathering ... There's a security presence there that just doesn't have any place in our society."

However, cabinet minister Murray Watt has defended the government's record, noting it had legislated a ban on the Nazi salute and other hate symbols, appointed an anti-Semitism envoy and passed anti-doxxing laws - which the coalition tried to vote down claiming it was mixed with unrelated elements it couldn't support.

Australia was one of 157 countries that voted in favour of the UN resolution, including allies like Canada, Germany and Japan.

"I respectfully disagree with Mr Netanyahu's comments," Senator Watt told Sky News.

"It's completely incorrect to label Australia as taking some kind of position that's out of step with the rest of the world."

He also lashed the opposition leader as he called for all politicians to stand united on the issue.

"Peter Dutton chooses to try to politicise it and divide our community, rather than try to bring us together," he said.