Leaders strike a sombre tone commemorating the deaths of 1200 Israelis and the taking of 250 hostages by Hamas as mediators try to broker a ceasefire that sticks.
Prime Minister Anthony Albanese described October 7 as "a day of pain and terror for Jewish people around the world" that must be remembered to remind of the suffering endured.
"We must never forget the atrocities that were inflicted by Hamas," he said.
"We also think of those still held hostage and join with our partners around the world in calling for the hostages to be returned immediately, and with dignity."
Opposition Leader Sussan Ley said the cross-border attack resonated beyond Israel.
"Two years ago the world was changed as one of the most horrific terrorist attacks in modern history was perpetrated against the peop