Funding was suspended to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) after accusations some staff members were involved in the October 7 attack against Israel by designated terror group Hamas.
Foreign Minister Penny Wong signed an agreement with the agency before reinstating funding after it assured the government it had taken action and investigated the serious allegations.
Foreign Minister Penny Wong has reinstated some funding for Palestinian refugees. (Joel Carrett/AAP PHOTOS)
Australia's $6 million donation to the agency's flash appeal could only be spent on dignity and shelter kits as part of stringent probity requirements.
Palestine's envoy in Australia Izzat Abdulhadi has called for more funding.
"There are huge demands now, it's the only agency that provides the scale of humanitarian assistance needed in Gaza," he told AAP.
Liberal Senator Claire Chandler criticised the $6 million donation, saying money was paid weeks before the agency confirmed at least nine staff may have been involved in the October 7 attack.
All were fired.
"It's unacceptable for even a dollar of Australian taxpayers' money to go to an organisation with terrorists in its ranks," she told AAP.
Under the funding agreement, which was released in full on Monday, UNRWA must report any allegations of corruption or bribery that "warrant investigation" to Australia.
UNRWA staff must not endorse any terrorist activity or promote organisations seeking to incite violence, intolerance or discrimination on social media.
The digital staff list, including ID numbers, must be provided to Australia upon request and UNRWA must undertake periodic updates of all staff members and personnel.
The agency must ensure it has appropriate programs to verify financial statements and keep detailed records and provide a financial report to Australia.
There will also be joint field visits to UNRWA operations funded by Australia.
It comes as the Albanese government balances another diplomatic tightrope on Palestine ahead of a vote on a UN resolution calling for Israel's withdrawal from Gaza and the West Bank in line with an International Court of Justice opinion.
The Palestinian Authority is pushing to uphold the court's advisory opinion that undercut Israel's claims to sovereignty over the occupied territories, saying it was violating international law.
Izzat Abdulhadi has urged Australia to support a UN resolution for Israel to withdraw from Gaza. (Mick Tsikas/AAP PHOTOS)
Mr Abdulhadi called on Australia to support the non-binding motion, saying it was in line with the court's opinion which the federal government said it respected.
Israel rejected the legitimacy of the ruling and it's ambassador to the UN Danny Danon said the motion was a "reward for terrorism".
Opposition foreign affairs spokesman Simon Birmingham also called for the Albanese government to reject the motion, saying it was one-sided and failed to condemn Hamas or support Israel's right to exist.
