Penny Wong says Labor's changed position on Israel and Palestinian lands is not a prejudgement on the final status of Jerusalem by Australia.
The government has returned to the position of referring to “occupied Palestinian territories," mirroring the United Kingdom, New Zealand, and European Union.
Asked if Israel should withdraw from these territories, the foreign minister said "we've returned to a more centrist position".
"The fact that we have articulated this position ... does not prejudge final status issues, including the final status of Jerusalem," she told the ABC's Insiders.
"We're not, and neither is the rest of the international community."
Asked for her position on East Jerusalem, Senator Wong said she believed it has been regarded under international law as occupied.
"We tried to take a principled and consistent, coherent position," she said.
"That is how we have approached this issue, not through the prism of domestic politics."