The government has called in the Israeli ambassador after soldiers were cleared over an air strike that killed Australian aid worker Zomi Franckom.
Foreign Minister Penny Wong said Australia was outraged the Israeli government had decided not to pursue criminal proceedings against those responsible for killing Ms Frankcom and her World Central Kitchen colleagues.
Israel's military announced on Wednesday night AEST it had completed reviews of 150 incidents of troop conduct in Gaza and made decisions on five cases, including the April 1 2024 attack on an aid convoy that included Ms Franckom.
The military said there was "no reasonable suspicion of criminal misconduct that would justify the opening of a criminal investigation".
Senator Wong said in a statement: "Zomi represented the best of Australia. Her courage deserves to be celebrated. Her family deserves justice.
"This decision falls far short of the accountability we expect."
The Australian government and Ms Frankcom's family have demanded transparency and accountability from Israel over her death, when an air strike hit a World Central Kitchen aid convoy in Khan Younis in southern Gaza.
The convoy was marked, but the Israeli military initially claimed it was being used by Hamas before later acknowledging the misidentification and errors in the decision-making process.
Two Israeli officers were dismissed from their positions and three senior officers were formally reprimanded, according to the Israeli military.
Australia has requested audio of the drone strike footage on behalf of the family, and Prime Minister Anthony Albanese raised Ms Frankcom's death with Israeli President Isaac Herzog during the leader's visit in February.
"Democracies seek and accept higher standards. The Australian government will not stop pressing Israel for justice for Zomi and her colleagues," Senator Wong said.
Israeli ambassador Hillel Newman had been called in by Senator Wong, who has also directed Australia’s ambassador to Israel to convey the government's views directly to Israel.
The government is considering its next steps, Senator Wong said.
Israel's decision was announced on World Humanitarian Day, which Senator Wong noted was " especially insulting to Zomi’s loved ones, humanitarians and all Australians".
A lawyer for the family of British aid worker Jim Henderson, who was also killed in the strike, said the strikes on multiple World Kitchen vehicles showed "gross negligence" by military soldiers that demanded further inquiry.
"This is a systematic annihilation of those who would help Palestinians," Henderson family lawyer Forz Khan told ABC Radio National on Thursday.
