A car was burned on Magney Street, Woollahra in Sydney's east, a suburb known for its Jewish community, in the early hours of Wednesday morning.
The vehicle, two buildings and a footpath were graffitied with hate speech, NSW Police said.
View this post on Instagram A post shared by Anthony Albanese (@albomp)
The perpetrators are believed to be two people of slim build, aged between 15 and 20 years, wearing face coverings and dark clothing.
The graffiti on one of the buildings said 'Kill Israiel' (sic).
Anthony Albanese said it was an "anti-Semitic attack".
"This isn't an attack on a government, this is an attack on people because they happen to be Jewish," he told ABC radio.
"This is a hate crime, it's as simple as that."
Mr Albanese said the perpetrators were guilty of "abhorrent criminal behaviour".
"This does not change anything that is occurring on the ground in the Middle East," he said.
"This is an attack against their fellow Australians."
The incident has been escalated to the Australian Federal Police, after a spate of similar incidents across the country.
The attack in Woollahra has been elevated by the prime minister to Australian Federal Police. (Mick Tsikas/AAP PHOTOS)
On Friday, the Adass Israel Synagogue at Ripponlea in Melbourne's southeast was set alight in a pre-dawn attack while a number of people were inside.
The federal police have set up Operation Avalanche to investigate what was labelled a "likely" act of terrorism.
Operation Avalanche will now also investigate Wednesday's incident.
This is the second such incident in Woollahra, which is home to more than 7000 people, after buildings and vehicles were targeted in November.
A ute was set on fire, multiple cars were graffitied and a restaurant and other buildings were graffitied with anti-Israel messages.
Two men were arrested and charged over that attack.
NSW Premier Chris Minns branded Wednesday's incident an act of anti-Semitism.
Shocking images of this anti-semetic attack in Woollahra this morning. — Chris Minns (@ChrisMinnsMP) This is not the Sydney we want. These racist attempts to divide our city won't work. I'll be speaking to police this morning. They will be found and they will face the full force of the law.December 10, 2024
"I'll be speaking to police this morning," he posted on social media.
"They will be found and they will face the full force of the law."
Executive Council of Australian Jewry co-chief executive Alex Ryvchin said it was designed to terrorise Jewish Australians.
"The Jewish community again wakes to scenes of terror and devastation," he said.
"How long will this continue and with what horrors will it end?"
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