Australia on Monday launched an anti-semitism task force following an arson attack at a synagogue in Melbourne last week which police say was likely terrorism.

The fire early on Friday at the Adass Israel synagogue injured one and caused widespread damage, and has strained relations between Australia and its ally Israel.

It is the third anti-semitic attack in Australia this year, following the vandalism of a Jewish MP's office in Melbourne in June and anti-semitic graffiti daubed on cars in Sydney's eastern suburbs, an area with a high Jewish population, last month.

The Australian Federal Police (AFP) task force will be known as Abalight.

"Special Operation Abalight will be an agile and experienced squad of counter-terrorism investigators who will focus on threats, violence, and hatred towards the Australian Jewish community and parliamentarians," the head of the AFP Reece Kershaw told a news conference.

"In essence, they will be a flying squad to deploy nationally to incidents."

Australia Prime Minister Anthony Albanese said the attacks on the Jewish community were concerning.

"Antisemitism is a major threat, and antisemitism has been on the rise," he said.

Earlier on Monday, Australian police transferred the investigation into Friday's blaze to a joint counter-terrorism unit, saying the blaze was likely a terrorist attack.

State and federal police along with the country's domestic intelligence service will work in tandem to identify three suspects wanted in connection with the attack, Shane Patton, Chief Commissioner of Victoria Police, told a news conference.

"We have the best resources, best-skilled investigators, people who are expert in this field, and we will throw everything we can at this investigation to resolve it," he said.

Police initially said on Friday it did not believe the fire met the threshold of a terror attack.

Designating it a suspected terror incident gives investigators additional resources and powers that include preventative detention, Patton said.

Police have also stepped up patrols of Jewish areas in Melbourne in order to reassure the community there, he added. (Reuters)