As an Israeli-Aussie, I can say that Australia does not really understand what it's like to stand in Israel's shoes, despite presumably supporting Israel's war on terrorism, etc. Also, I believe that if Australia were faced with a similar political scenario as Israel, it would have done the same thing, namely, use Israeli passports to achieve national security goals. I am convinced that the reaction is not sorrow but rather anger, and sadly, Australia copies everything the UK does. So far, neither Germany, France, nor Ireland have expelled any Israeli diplomat, despite similar number of passports, and the US - Australia's closet ally - have ignored the affair entirely. Thus, the Australian response is largely inappropriate.
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Three Border Police officers wounded in suspected West Bank car-ramming attack (Haaretz)