Attorney General George Brandis was freelancing when he suddenly announced a policy change to describe Israeli-held East Jerusalem as "disputed" territory rather than the standard descriptor of "occupied" used by Australia and other governments before now.

With Australian agricultural contracts at risk of being cancelled or reduced amid uproar in the Arab world, Fairfax Media has learned that the avowedly pro-Israel Mr Brandis's switch to what he regards as less freighted or perjorative language, was not agreed in cabinet nor even run past the Prime Minister's office.

Trouble prone Attorney General causes major angst: Senator George Brandis. Credit:Andrew Meares

The issue is causing major angst even though Tony Abbott publicly backed in his trouble-prone Attorney General.

Speaking on the floor of the New York Stock Exchange just hours after the Brandis decree on behalf of the coalition government, Mr Abbott agreed that the term "occupied" East Jerusalem was loaded.