Anthony Albanese has backed the release of hostages being held by Hamas, saying a ceasefire can't be "one-sided".
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Israel and Hamas initially agreed to a four-day ceasefire to exchange 50 hostages being held in Gaza, for 150 Palestinian prisoners held by Israel.
But the ceasefire and hostage exchange will not take place before Friday.
Israeli media is reporting there would be no pause to the fighting in Gaza as long as there is no set timeline for the agreement.
The brokered deal would also allow entry of humanitarian aid into the besieged strip.
Hamas, considered a terrorist group by the Australian government, launched its attack on Israel on October 7.
"We welcome steps towards ceasefire - it can't be one-sided," the prime minister told ABC radio in Sydney on Thursday.
"We've seen too much life being lost. We mourn every Palestinian and every Israeli who is innocent, who's been a victim here."
The government continued to back a political settlement that led to two states, with Palestinians and Israelis living in security in the region, he said.
The government is continuing to assist 69 people in Gaza after 127 Australians, permanent residents and their families left the strip.
Australia has issued more than 850 visas to people in Gaza and some 1700 to people in Israel.
The government has reaffirmed all visa recipients have gone through security and character checks after the opposition called for the safety of Australians to be ensured.
Opposition home affairs spokesman James Paterson wanted reassurance security agencies hadn't been rushed and appropriate checks had been conducted.
The number of visas granted had been a lot for such a tight period of time, he said.
"I'm looking for assurance from the government that no corners have been cut," he told Sky News.
Foreign Minister Penny Wong earlier said visas had been granted in accordance with Australia's immigration regime.
The Australian Federation of Islamic Council welcomed the announcement of the temporary ceasefire with cautious optimism.
"We embrace the release of hostages and those Palestinians who have been detained without charge, recognising this as a step towards peace," the council said in a statement.
"We further call on Australia to contribute to a durable solution founded upon a human rights framework, and one that holds all parties accountable."
It comes as the Melbourne electorate office of Government Services Minister Bill Shorten was vandalised on Thursday morning following comments about the response in Australia to the Middle East conflict.
The electorate office was splashed in red paint and graffiti which read "down the apartheid Bill".
Mr Shorten said he believed the graffiti was most likely in reference to his plea to protesters to "dial down the degree of aggro", after bloodied replicas of corpses were left outside offices of federal MPs.
"There's nothing wrong with calling for peace in the Middle East, that's fine. But what Australians don't want, in my opinion, is to have those arguments transmitted here on higher and higher escalation," he told Nine's Today program.
"I don't know why people think that carrying on and escalating aggro in this country helps people in the Middle East, or indeed helps the case you're trying to make in Australia, it just turns people off.
"This is not the Australian way."
Australian Associated Press
