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Israel's prime minister accused his Australian counterpart of having "betrayed Israel" and "abandoned" Australia's Jewish community, after days of growing strain between the two countries.
Benjamin Netanyahu said on Tuesday that history would remember Anthony Albanese "for what he is: a weak politician".
Australia barred a far-right member of Netanyahu's ruling coalition from entering the country on Monday, and Israel in turn revoked the visas of Australian representatives to the Palestinian Authority.
Australian Immigration Minister Tony Burke said Netanyahu was "lashing out" in response to Canberra recently announcing it would join the UK, France and Canada in recognising a Palestinian state.
"Strength is not measured by how many people you can blow up or how many people you can leave hungry," Burke told the Australian Broadcasting Corporation on Wednesday.
Israel's opposition leader criticised Netanyahu's remarks, branding them a "gift" to the Australian leader.
Yair Lapid wrote on X: "The thing that most strengthens a leader in the democratic world today is a confrontation with Netanyahu, the most politically toxic leader in the Western world.
"It is unclear why Bibi is rushing to give the Prime Minister of Australia this gift."
Diplomatic tensions flared on Monday after far-right Israeli politician Simcha Rothman's Australian visa was cancelled ahead of a visit to the country, where he had been due to speak at events organised by the Australian Jewish Association (AJA).
Burke told local media at the time the government took "a hard line" on people seeking to "spread division".
"If you are coming to Australia to spread a message of hate and division, we don't want you here," he said.
Last year, Burke also denied a visa to Israel's former justice minister Ayelet Shaked, a right-wing politician who left parliament in 2022.
A few hours after the revocation of Rothman's visa was announced, Israel's Minister of Foreign Affairs Gideon Sa'ar said he had instructed the Israeli Embassy in Canberra to "carefully examine any official Australian visa application for entry to Israel".
He added in a post on X: "While antisemitism is raging in Australia, including manifestations of violence against Jews and Jewish institutions, the Australian government is choosing to fuel it".
In recent months, there have been a string of antisemitic attacks in Australia - which is home to one of the world's largest populations of Holocaust survivors per capita.
On Tuesday, the AJA said Rothman would still appear at their speaking event virtually.
"The Jewish community won't bow down to Tony Burke or [Foreign Minister] Penny Wong," it said in a social media post.
Australia announced in early August that it would recognise a Palestinian state, with Prime Minister Albanese saying at the time that Netanyahu was "in denial" about the consequences of the war on innocent people.
"The stopping of aid that we've seen and then the loss of life that we're seeing around those aid distribution points, where people queuing for food and water are losing their lives, is just completely unacceptable," he said.
The state of Palestine is currently recognised by 147 of the UN's 193 member states, and Australia's announcement came about two weeks after similar moves by the UK, France and Canada.
In response, Netanyahu launched a scathing attack on the leaders of the three countries, accusing Sir Keir Starmer, Emmanuel Macron and Mark Carney of siding with "mass murderers, rapists, baby killers and kidnappers".
More than 62,064 people have been killed as a result of Israel's military campaign since 7 October, according to the Hamas-run health ministry.
Israel launched the offensive in response to the Hamas-led attack on 7 October, in which about 1,200 people were killed and 251 others were taken hostage.
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