Here's Everything You Need To Know About Australia Considering Moving Its Israeli Embassy To Jerusalem

    The possibility has been welcomed by Jewish groups and some conservatives, but could hurt Australia's relationship with its largest neighbour, Indonesia.

    Australia might follow the lead of the United States and move its embassy in Israel from Tel Aviv to Jerusalem. Israel is happy about it, but it's making a lot of other people extremely unhappy.

    Here's what you need to know.

    After US president Donald Trump announced, and then proceeded with plans to move the US embassy in Israel from Tel Aviv to Jerusalem, the Australian prime minister at the time (because we change them a lot) Malcolm Turnbull ruled out Australia following suit.

    In June this year, the then foreign minister Julie Bishop confirmed Australia would not be moving the embassy because "Jerusalem is a final status issue and we have maintained that position for decades".

    But we've since changed leaders, and Turnbull has left parliament, meaning there is a by-election in his former seat of Wentworth.

    The Liberal candidate is Dave Sharma, Australia's former ambassador to Israel.

    Wentworth is home to a significant Jewish population. In what is being interpreted as a bid to help retain what should otherwise be a very safe Liberal seat, with a buffer of over 17%, prime minister Scott Morrison announced on Tuesday that Australia would "carefully examine" arguments made by Sharma and others to move the embassy from Tel Aviv to West Jerusalem.

    Australia would also consider recognising Jerusalem as the capital of Israel, without prejudice to its final boundaries, while acknowledging East Jerusalem as the expected capital of a Palestinian state.

    "Any decision will be subject to a rigorous assessment of the potential impact of such a move on our broader national interests," Morrison said in a statement.

    Australia will not support a forthcoming United Nations vote on the Palestinian Authority chairing the Group of 77 coalition of developing nations, and will also review the Iran nuclear deal to see if "current policy settings remain fit for purpose".

    The announcements have gone over well with some in the Jewish community in Australia. The Executive Council of Australian Jewry (ECAJ) said it "warmly welcomed" the embassy location review and the other announcements.

    "It has long been the position of the ECAJ that Australia should recognise Jerusalem as the capital of Israel and consider relocating the Australian embassy, currently in Tel Aviv, to the government precinct in west Jerusalem," the ECAJ said in a statement. "Every State has the right to determine where within its sovereign territory its capital should be located."

    Israeli prime minister Benjamin Netanyahu tweeted he was "very thankful" that Australia was considering the move.

    I spoke today with Australian PM @ScottMorrisonMP. He informed me that he is considering officially recognizing Jerusalem as the capital of Israel & moving the Australian embassy to Jerusalem. I’m very thankful to him for this. We will continue to strengthen ties between 🇮🇱 & 🇦🇺!

    Others are less impressed by the news.

    The Palestinian Authority's representative in Australia, Izzat Abdulhadi, said in a statement that the move would risk Australia becoming an "international pariah" and would hurt relations with Arab and Muslim-majority countries.

    "If this decision is made, it is difficult to see how Australia could be fair-minded and peace-focused moving forward, especially since the Israeli government considers all of Jerusalem to be its ‘eternal and undivided capital’," he said.

    "Specifically, the prime minister’s assertion that the embassy move is a ‘sensible proposal’ is deeply disturbing."

    The Labor opposition has accused Morrison of being "desperate to hang onto his job" and saying anything to win a few more votes in Wentworth.

    "The people of Wentworth, and all Australians, deserve a leader who puts the national interest ahead of his self-interest, and governs in the best long term interest of the nation, not one prepared to play games with long standing foreign policy positions five days out from a by-election," shadow foreign minister Penny Wong said in a statement.

    There is also concern that Morrison's thought bubble might threaten a trade deal between Australia and its largest neighbour, Indonesia.

    The country, home to the world's largest Muslim population, is close to signing off on a free trade agreement with Australia. There have been reports the Indonesian government could put the deal on ice as a result of the announcement, but Indonesia has denied that claim to Reuters.

    Representatives for 13 Arab countries reportedly also met this week and announced they would be sending a letter to foreign minister Marise Payne to express their concern about the announcement.