Inside Politics: What does Australia's shift on Palestinian statehood mean?

Six months after the deadly conflict between Israel and Hamas began, Foreign Affairs Minister Penny Wong has signalled a shift in Australia’s position on the question of Palestinian statehood.

Wong said that recognising Palestinian statehood, without waiting for years of peace talks with Israel, could improve the chances for peace and build momentum towards a two-state agreement.

The Federal Government’s position has been met with fierce backlash from pro-Israel groups and the Opposition, who say that would reward Hamas for its October 7 terror attacks.

Plus the Government's plan to strengthen merger laws and help more businesses make products in Australia as it gears up for its May 14 budget.

Today, foreign affairs correspondent Matthew Knott, chief political correspondent David Crowe and economics correspondent Shane Wright join Jacqueline Maley to discuss.

Cut through the noise of federal politics with news, views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weekly Inside Politics newsletter here. Subscribe to The Age & SMH: https://subscribe.smh.com.au/ See omnystudio.com/listener for privacy information.