Foreign Affairs Minister Penny Wong has confirmed Australia has issued 860 temporary visas to Palestinians.
Wong also announced 67 individuals including Australians, permanent residents and their families crossed out of Gaza through Egypt's Rafah border crossing overnight.
So far a total of 127 Australians, permanent residents and their families have left the besieged enclave.
Wong said people who obtained the Australian visas, which were issued between 7 October and 20 November, were subject to "appropriate security checks".
She said 1,793 visas were issued to Israeli citizens in the same period.
Responding to news to allow the release of 50 hostages held in Gaza in exchange for 150 Palestinians imprisoned in Israel, and the entry of humanitarian aid, Wong said she commended the progress made.
"This is an important and necessary step, but what we must ultimately work towards is a long-term enduring peace," she told reporters in Adelaide on Wednesday.
"I think we would all want to see a sustainable ceasefire and we also know they cannot be one-sided."
Wong reiterated Australia's calls "with Israelis and Palestinians living securely and prosperously within internationally recognised borders".
Australia has been working with Qatar and the US to help support and protect civilians in an effort to prevent the violence from spreading, Senator Wong said.
Israel has bombarded Gaza since Hamas' 7 October attack in which more than 1,200 people were killed, according to the Israeli government, and over 200 hostages taken.
More than 14,100 people have been killed in Gaza since 7 October, according to the health ministry in Hamas-controlled Gaza.
On Tuesday night at Sydney's Port Botany while protesting against an Israeli shipping line.
Wong said Australia has not supplied weapons to Israel.
"It is important to not allow distress to turn to anger and hatred and that we work to ensure our country is not divided by this conflict," she said.
"Australians have a right to be safe and Australians have a right to feel safe and no one in this country should be fearful because of who they are or because of their faith."
