New South Wales Premier Chris Minns has vowed to tighten the state's hate speech laws in response to a series of anti-Semitic incidents, including Friday's vandalism of the former home of a prominent Jewish leader.

A series of attacks in Sydney, including vandalizing homes and setting vehicles on fire, has raised concerns among community leaders about an escalation in violence from the conflict in Gaza.

On Friday, New South Wales police said they were also investigating Islamophobic graffiti found at a corner shop in Sydney's west.

Mings said "tough decisions" would be made when the NSW Parliament returned to further crack down on anyone "promoting hatred in the community".

"Our government will make a decision soon, which is a difficult decision but I believe it is the right one, to strengthen NSW's hate speech laws so that if someone promotes hatred in the community, within two months or It wouldn't have manifested itself in three months later with a firebomb or an attack or something worse," he said on Sunday.

"We will spare no effort to respond to all forms of violence in New South Wales and the police response will be massive."

Prime Minister Anthony Albanese, who was in Sydney's west to announce $1 billion in road funding alongside Mings, said the government was "determined to prevent this".

An federal police task force is investigating anti-Semitism across Australia following the terror attack at Melbourne's Adas Israel synagogue. The task force arrested a Sydney man on Thursday for allegedly making death threats against members of Jewish organizations.

"There is no place for anti-Semitism in Australia, no place for the kind of heinous behavior we have seen," Albanese said.

The prime minister said the world remained hopeful that a ceasefire could be maintained in the Middle East despite lingering tensions.

A ceasefire between Israel and Hamas will come into effect on Sunday afternoon Australian time after 15 months of war.

The three-phase deal will come into effect once Israel agrees to it and the hostages will be released, but Israeli Prime Minister Benjamin Netanyahu has said the ceasefire is only temporary.

"We are certainly hopeful, as I think the world is, that the ceasefire will hold. It's something the world wants to see and is happy that it has happened and will be put in place," Albanese told reporters.

"We want to see the hostages released, we want to see the people of Gaza receive appropriate assistance, and we want Israelis and Palestinians to be able to live in peace and security."

Speaking about the impasse between NSW's public psychiatrists and the state government, Mings said he was concerned but said the state could not afford the salary demands.

More than 200 of the state's public psychiatrists may resign this week after talks between unions and the government reached an impasse.

Doctors' union the Australian Federation of Salaried Medical Officers has warned the health system will "fall off a cliff" if the mass resignations continue.

The state's psychiatrists have proposed a special levy to increase their salaries by 25 per cent, similar to what emergency doctors received in 2015, which would help bring NSW wages in line with other states and territories.

Mings said the pay increase for psychiatrists could be equivalent to an additional $100,000 per year.

The Prime Minister said accepting the wage demands could anger other essential workers who are paid less and encourage them to threaten to weaken government services to secure the wage demands.

"We're going to be in a situation where we say no to nurses, police, teachers, but especially yes to psychiatrists because if we don't, they threaten to cripple the public health system," Mings said. ”

"I think this will be an open invitation to other groups that have asked the NSW government to do the same thing."