Palestine's envoy in Australia has called for the reinstatement of funding for a United Nations agency helping refugees in Gaza and a substantially increased contribution from the government.
Foreign Minister Penny Wong flagged an imminent humanitarian package for Gaza on Wednesday, reiterating her horror at the loss of life in the besieged enclave.
Local health officials say more than 30,000 civilians have been killed since Israel struck back following the October 7 attack by Hamas that killed 1200 people and resulted in more than 200 taken hostage, according to Tel Aviv.
The humanitarian situation in Gaza had deteriorated and urgent aid through the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) was needed, Palestinian ambassador Izzat Abdulhadi said.
"It's urgent, it's important, it's crucial to continue to support UNRWA," he told AAP.
"I think the foreign minister knows the importance of providing aid to the Palestinian people in Gaza, it's a very dire situation - there is hunger and starvation."
Australia froze aid to the organisation alongside other international partners after Israel accused about a dozen staff of participating in the October 7 attack.
The United Nations is carrying out an investigation and several people were fired from the organisation following the allegations.
Australia's ambassador to the United Nations, James Larsen, urged Israel to fully co-operate and present the evidence it has as the government wanted to resume funding to the agency.
Australia remained concerned about the allegations and sought "urgent assurance that will allow us to restore funding", Mr Larsen said.
Department of Foreign Affairs officials told a parliamentary hearing in February there was exaggeration and misinformation targeting UNRWA from interest groups that wanted the organisation disbanded.
The director of UNRWA affairs in Gaza, Thomas White, met with Australian parliamentarians and the foreign minister's office at Parliament House at the end of February.
During numerous closed-door meetings, he briefed MPs from all sides of politics on the situation in Gaza and the agency's work.
Humanitarian assistance was needed for Gaza, Senator Wong said as she repeated calls for an immediate humanitarian ceasefire on Wednesday.
"What we are seeing in terms of a loss of life is horrific," she told ABC TV.
"We have said for many weeks and months now that there should be humanitarian assistance provided to Gaza."
The European Commission is set to pay UNRWA 50 million euros ($A83 million) this week but will hold further funding back.
The commission said it would pay the funds after the agency committed to stronger oversight.
Israel criticised the announcement, saying it legitimised the actions of any employees who participated in the attack.
Australia would make an assessment "at an appropriate time" when it comes to reinstating UNRWA funding, Prime Minister Anthony Albanese said.
"This is a dire and catastrophic circumstance that we see and we want people to have access to appropriate support," he told reporters in Melbourne.
Australia has announced $46.5 million for humanitarian aid since October 7.
Mr Abdulhadi called for this to be doubled or tripled after another aid package was flagged for the coming days.
"They are under huge financial pressure, UNRWA shutting down would create a more catastrophic situation in Gaza," he said.
He also urged Australia to take a stronger stance on Israeli settler violence in the occupied Palestinian territories after the US, UK and French governments sanctioned some settlers for acts of violence and incitement against Palestinians.
