Australia criticised Israeli leader Benjamin Netanyahu on Wednesday after he said the country's prime minister was weak, with a top minister saying strength was more than "how many people you can blow up".

For decades, Australia had considered itself a close friend of Israel, but the relationship has swiftly unravelled since Canberra announced last week it would recognise a Palestinian state.

Netanyahu drastically escalated a war of words on Tuesday night, calling his Australian counterpart Anthony Albanese a "weak politician who betrayed Israel".

Australian Home Affairs Minister Tony Burke on Wednesday said it was the sign of a frustrated leader "lashing out".

"Strength is not measured by how many people you can blow up or how many children you can leave hungry," Burke told national broadcaster ABC.

"What we've seen with some of the actions they are taking is a continued isolation of Israel from the world, and that is not in their interests either."

Australia on Monday cancelled the visa of far-right Israeli politician Simcha Rothman – a member of Netanyahu's governing coalition – saying his planned speaking tour would "spread division".

The tit-for-tat continued on Tuesday, when Israel retaliated by revoking visas held by Canberra's diplomatic representatives to the Palestinian Authority.

New Zealand Prime Minister Christopher Luxon said last week that Netanyahu had "lost the plot". (AFP)