Hamas' attack on Israel left more than 1400 dead with about 200 people taken hostage.
Since then, retaliatory strikes have killed more than 5000 Palestinians.
Ambassador Amir Maimon said Tel Aviv was acting in accordance with humanitarian law.
"Innocent Israelis are suffering following this barbaric attack of the Hamas," he said.
"You don't measure the legitimacy of the Israeli response by the number of the casualties.
"You measure it by the adherence of the Israeli government to the international law, we are adhering, complying to the international law."
Mr Maimon will address the National Press Club on Wednesday as pressure mounts on Prime Minister Anthony Albanese to visit Israel on his way home from the United States.
Australia is continuing to call for a humanitarian corridor out of Gaza after Jordan managed to secure the release of four Australians and a permanent resident from the West Bank.
The prime minister and foreign minister have said all innocent lives matter and called for Israel to act in accordance with international law.
Muslim minister Ed Husic has called the blockade stopping fuel and supplies into Gaza "collective punishment", going further than his cabinet colleagues.
He said while no one disputes Israel's right to defend itself against the terrible attack, he was simply calling for "a strategic, more precise way to deal with Hamas" that takes into account the toll being borne by innocent Palestinians.
"People understand Hamas needs to be held to account, but there is genuinely a concern in the community," he told ABC TV.
Asked about Mr Husic's previous comments against collectively punishing Palestinians, the ambassador said the Australian government had been clear about its condemnation of Hamas.
Hamas is a prescribed terrorist group by the Australian government.
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