Independent MP Allegra Spender, whose Wentworth electorate in Sydney has a large Jewish community, has called for draft laws to be strengthened to include an offence for serious vilification as attacks escalate.
Ms Spender's amendment would stop hate at its source, Equality Australia chief executive Anna Brown said.
"The noisy fringe groups are getting louder and louder and we're seeing their threats and their hatred escalate into violence," she said.
"It's time for the parliament to act."
MP Allegra Spender says Australia will not tolerate a terrorising of any part of the community. (Lukas Coch/AAP PHOTOS)
Ms Spender on Tuesday called on parliament to deplore the "appalling and unacceptable" rise in anti-Semitism across Australia, including recent attacks on synagogues, schools, and childcare centres.
"We will not stand for hate, we will not stand for abuse, we will not abide intimidation, and we will not tolerate a terrorising of any part of our community," she said introducing her motion to the House.
"We are all united against anti-Semitism."
Attorney-General Mark Dreyfus introduced Labor's bill to the lower house in September, before it was sent to a parliamentary inquiry for further scrutiny.
The coalition wants a provision for the protection of places of worship, but the government says the bill does that.
The parliament was urged to act after anti-Semitic attacks on Jewish community facilities. (Steven Saphore/AAP PHOTOS)
The government will introduce amendments in response to four recommendations made by the inquiry, which could be voted on later this week.
The legislation would then need to clear the Senate.
Liberal MP Julian Leeser - who is Jewish - took aim at the government for having "failed to do all they can".
"What we have seen is half measures and weakness when what we needed was strong measures and strong leadership," he said.
"The government has been reactive. It has not led."
Liberal Julian Leeser criticised the government as not leading the fight against anti-Semitism. (Lukas Coch/AAP PHOTOS)
The prime minister listed measures his government had implemented to crackdown on escalating attacks, which included convening national cabinet.
"We have not wavered. Anti-Semitism stands in vital opposition to all we are as a nation, and all with that we have built together over generations," Mr Albanese said.
"It has no place in our nation, and we will combat it with the full force of our laws and with total commitment from every level of government.
"I say to Jewish Australians, proudly stand tall. You belong here, and Australia stands with you."
Opposition Leader Peter Dutton said the "national crisis" had been brewing for a long time.
"We stand with the Jewish community, we stand with every right-thinking Australian, and we condemn anti-Semitism in every form," he said.
In the upper house, similar motions were backed by senators.
Independent senator Lidia Thorpe condemned anti-Semitism as a form of racism and white supremacy.
Independent senator Jacqui Lambie has branded anti-Semites as "Australia's scum". (Mick Tsikas/AAP PHOTOS)
Independent senator Jacqui Lambie said the hate had to stop and lashed the people perpetrating it.
"You are Australia's scum ... and every politician in this Senate and the House needs to work together on this and stand up against anti-Semitism and racism in all its forms," she said.
Victorian legislation, debated in the state's lower house on Tuesday, would expand vilification protections for race or religion to characteristics of disability, gender identity, sex and sexual orientation.
The Victorian coalition opted to oppose the reforms in their current form, citing an exemption for genuine political use.
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