The funding will target women and girls, including through the delivery of nutrition support and hygiene and dignity kits after a nearly year-long war has largely levelled the strip and resulted in a humanitarian crisis.
The money will be given to charity UNICEF and a United Nations sexual and reproductive health agency.
Palestine's envoy to Australia Izzat Abdulhadi welcomed the announcement, which brought the nation's total humanitarian contribution to Gaza to $82.5 million.
Palestinian ambassador Izzat Abdulhadi thanked the Australian government for its latest aid funding. (Mick Tsikas/AAP PHOTOS)
"We thank the Australian government for their generosity," he told AAP.
"I'm sure this additional $10 million will make a difference to Palestinian people in Gaza."
He called on the international community to provide more help to people suffering from a catastrophic humanitarian crisis in the besieged strip.
The federal government should open a humanitarian visa class offered to Ukrainians fleeing war to Gazans, help arriving refugees and clear visas which have been stalled, Mr Abdulhadi said.
"There are a lot of pending applications from people from Gaza - I hope it will be solved and more people from Gaza can come to Australia," he said.
The coalition has called for a temporary ban on refugees coming from Gaza, arguing they are a threat to national security, but the government has resisted, saying all arrivals had been cleared by intelligence agencies.
Read our full statement here: — Senator Penny Wong (@SenatorWong) https://t.co/pESWT60u1fSeptember 23, 2024
Australia should move "without delay" to recognise a Palestinian state before the upcoming US election, with there being doubt over what a Trump presidency would mean for Palestine's statehood bid, Mr Abdulhadi said.
Such a move would bolster Australia's leadership credentials on the international stage, the envoy said.
"It's very timely now for the Australian government to send a message to Israel and also to give some hope to Palestinian people for their own future."
The Albanese government believes recognition needs to come as part of a negotiated peace process with Israel.
Israel has rejected unilateral efforts to recognise a Palestinian state after designated terrorist organisation Hamas launched an attack that killed 1200 people and resulted in 250 others taken hostage, according to Israeli tallies.
Such a move would be seen as rewarding terrorism, it argues.
Penny Wong says humanitarian relief must reach people in Gaza and aid workers should be protected. (Mick Tsikas/AAP PHOTOS)
Foreign Minister Penny Wong is reiterating calls for more aid and a ceasefire. She is at a UN meeting in New York, where she will press for greater protections for aid workers in Gaza.
The death toll in Gaza has surpassed 40,000, according to the local health ministry, following a sustained counter-offensive by Israel.
"Rapid, safe and unimpeded humanitarian relief must reach civilians and aid workers must be protected to enable their lifesaving work," Senator Wong said in a statement announcing the aid on Monday.
Australian aid worker Zomi Frankcom was killed by an Israeli airstrike in Gaza, which Israel's defence force blamed on a mistake.
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