The new diplomatic penalties against four settler farming outposts and three individuals, which took effect on Tuesday, are the latest in a long list applying to far-right Israeli figures.Â
The federal government has previously sanctioned Israel's national security minister Itamar Ben-Gvir, who posted a video of himself berating pro-Palestine activists in May.
Foreign Minister Penny Wong said Israel must uphold its obligations under international law and take urgent action to end settler violence.
"Settler violence is used to displace Palestinians and perpetuate the settlement enterprise, through destruction of property, displacement of families, beatings, sexual assault, and torture, resulting in serious injuries and deaths," she said in a statement on Tuesday.
"The individuals and entities sanctioned today have undermined Israel's own security and its standing in the world and harmed the interests of the Israeli people.
"Australia's imposition of sanctions against them reflects our commitment to Israel and Palestine's security and future."
Four settler farming outposts - Moshe's Farm, Meitarim Farm, Neria's Farm and Zvi's farm - which have served as a base for extremist Israelis who've attacked Palestinians, are included in the sanctions list.
The sanctions also include Ben Zion Gopstein, the founder of far-right extremist organisation Lehava, which the government says promotes Jewish supremacist ideology.
His organisation has been sanctioned by Australia since 2001.
Extremist settlers Eden Levi and Moshe Sharvit, both of whom Australia says have engaged in attacks and intimidation of Palestinians, have also been sanctioned.
The restrictions mean the men are no longer allowed to enter Australia and it is illegal for an Australian to give them money or assets.
Senator Wong said Australia had coordinated with partners, including New Zealand, in imposing the measures.
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