The Israeli Ambassador to Australia says his nation will only stop air strikes on the Gaza strip when Palestinians halt rocket attacks.

A six-month ceasefire has collapsed and Israel has retaliated to Hamas rocket fire with sustained air strikes that have killed over 300 people.

Hamas responded to the continuing bombardment by firing rockets the farthest yet into Israel, with one striking not far from Ashdod, Israel's second-largest port, some 30 kilometres north of Gaza.

Acting Prime Minister Julia Gillard yesterday accused Hamas of breaking the ceasefire and said Israel was responding to an act of aggression.

Israeli Ambassador Yuval Rotem says Israel will not stop its strikes until Hamas back down.

"We are willing and we are basically going to support any kind of quiet for quiet period," he said.

"But if any further provocation is going to come, Israelis continue to respond in a very decisive way. If there is going to be no fire by Hamas there will be no reaction from Israel."

He says the deaths are unfortunate, but hard to avoid.

"Hamas [has] deliberately put all their infrastructure around crowded areas and deliberately manufacture their rockets around mosque and schools in order to prevent us from responding to their provocation," he said.

"It's heartbreaking to see civilians in the line of fire, but it was deliberately done by the Hamas organisation."

A spokesman for the Department of Foreign Affairs and Trade says at this stage no Australians are believed to be caught up in the latest violence.