The perpetrators are believed to be two people of slim build, aged between 15 and 20 years, wearing face coverings and dark clothing.
The 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, NSW Police said.
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
The graffiti on one of the buildings said 'Kill Israiel' (sic).
NSW Police are searching for two persons believed to have been in the area at the time.
Premier Chris Minns said it was an "anti-Semitic attack".
"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."