There are two Australian diplomatic representatives in the region because Israel is an internationally recognised state, whereas Palestine is not politically independent. The Ramallah office is much smaller than the Israeli office. It is my understanding that the Australian government strongly supports the two-state solution. More information is available at the Australian Embassy's website.
Pictures: Ambassador James Larson dining with our Australian delegation (top); Palestinian Representative Ben Scott explaining a point to delegates (middle); the group after dinner (bottom, L-R: Rev John Henderson, Rev Terence Corkin, Dr Kevin Bray, Archbishop Phillip Aspinall, Ambassador James Larson, Representative Ben Scott, Rev Gregor Henderson, Rev Merrill Kitchen, Archbishop Frank Carroll, Rev Rod Benson, Lyndsay Farrell).