There was real fear in the Jewish community within the health sector following increased reports of confrontation, Jewish House Rabbi Mendel chief executive Mendel Kastel said.
A doctor was labelled a "Zionist pig" by a patient and refused treatment, Rabbi Kastel said on Tuesday.
Rabbi Kastel who is also a chaplain with NSW Health, told the commission even he was nervous to return to a Sydney hospital after allegedly offensive anti-Israel comments by two nurses made headlines.
The nurses were sacked over a video in which hypothetical Israeli patients were allegedly threatened with violence.
"What we saw after the nurses' incident, for instance, was taking calls from patients all through the hospital saying, 'please, please take my religion off my record'," Rabbi Kastel said.
"There is a very good culture within NSW Health, but there's still a lot of work to be done.Â
"And the good thing is that there's a willingness to be able to do it."
The inquiry entered a new block of hearings on Tuesday, examining the effectiveness of education and training, and how it can be improved to prevent and respond to anti-Semitic conduct.
A particular focus is being given to public institutions, schools and frontline government services including healthcare and the justice system.
Rabbi Kastel was the first to give evidence, speaking about a number of programs aimed at fostering curiosity and community.
"We're not going to be able to legislate ourselves out of this. It's about culture. It's about teaching people," Rabbi Kastel said.
The rabbi's brother-in-law was one of the 15 people killed at the Bondi terror attack in December.
He said the One Mitzvah campaign announced in the days after the Bondi terror attack, encouraging Australians of all faiths and backgrounds to share an act of kindness, offered an example worth following.
"I went to the premier's multicultural dinner, and everybody comes up to me and says, 'I've done my mitzvah for today'," Rabbi Kastel said.
"We're not going to agree on everything, but one thing we can agree on is to be kind to each other, to demand from the Australian society to be kind to everyone, whether you're Jewish or Muslim, Hindu, Christian doesn't matter."
The Melbourne Holocaust Museum also made a submission to the commission, with a push for social cohesion and anti-Semitism training to be included across the public sector.
The museum is also calling for a National Holocaust Education Standards Framework and dedicated security funding for at-risk institutions including schools and places of worship.
The museum is urging the government to consider ongoing funding for Holocaust museums as 'core infrastructure', which it considers essential to ensure the lessons of the Holocaust can be used to "prevent the recurrence of prejudice, racism, and anti-Semitism".
Representatives from the Department of Home Affairs, the Australian Public Service Commission and its NSW counterpart will give evidence later in the day.
The commission will later consider means of deradicalisation and assessing the powers of law enforcement and security agencies to tackle anti-Semitism.
The inquiry was called in January after 15 people were killed and dozens more injured when two gunmen opened fire at a Hanukkah event at Sydney's Bondi Beach on December 14.
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