Hamas has freed the first prisoners to be returned from the territory in exchange for Israel freeing Palestinian prisoners as part of a ceasefire agreement.
The Jewish community was grateful for their release, Jewish Community Council of Victoria president Philip Zajac said as he wished them "strength, peace, and healing on their road to recovery".
The Jewish community wished freed hostages "strength, peace, and healing on their road to recovery". (AP PHOTO)
"Though we are overjoyed with their release, we will only sleep easier when the remaining hostages have been reunited with their families," he told AAP.
"Until then, the hostages and their families remain in our prayers."
Mr Zajac said the council would work with governments, law enforcement and civil society to curb rising anti-Semitism following a spate of violence, including the arson attack on Melbourne's Adass Israel Synagogue.
The community was overjoyed at the release of the hostages but Israel had paid a large price for the exchange by having to release hundreds of prisoners, Alex Ryvchin from the Executive Council of Australian Jewry said
Mr Ryvchin wanted to see an end to the devastating war through which both Israelis and Palestinians had suffered.
Organisers of pro-Palestinian rallies say the events will continue despite the Gaza ceasefire deal. (Jeremy Ng/AAP PHOTOS)
Jewish Council of Australia executive officer Max Kaiser said he was "pleased to see the emotional scenes of (the) release of both Palestinian and Israeli hostages".
"We welcome this ceasefire and send our solidarity to all who have suffered and to those who have lost, and continue to lose, loved ones to this senseless violence," Dr Kaiser told AAP.
"It is also the time for Australia to join with the international community in addressing the root causes of this violence - Israel's brutal occupation, unequal treatment, and continued campaigns of violence against Palestinians."
Others have warned the deal could allow Hamas to strengthen its grip on power.
"The flood of joyful emotions in seeing the first three captives returned to their families is undeniable. Yet at the same time, one must never forget that there are no clear winners when bargaining with terrorists," Australia/Israel & Jewish Affairs Council executive director Colin Rubenstein said.
One rally organiser said it was a time to celebrate, mourn and reflect for all of humanity. (Con Chronis/AAP PHOTOS)
The ceasefire was "far from the resolution Palestinians need and deserve", the Australia Palestine Advocacy Network said.
President Nasser Mashni said the ceasefire didn't change the lived reality of Palestinians living under illegal Israeli occupation.
"The Australian government must act (and) cut military ties, impose sanctions and meet its international legal obligations to hold Israel accountable for its crimes," he said.
"Our fight for Palestinian liberation is far from over."
Victorian Premier Jacinta Allen said she hoped the ceasefire meant "we can bring some peace to our streets here in Melbourne", despite Free Palestine Melbourne saying it would continue to host weekly rallies.
Welcoming the hostage release, Prime Minister Anthony Albanese called for the temperature in Australia to be lowered after a spate of anti-Semitic attacks.
"We must now see their full release and the ceasefire deal implemented in full, including increased aid into Gaza where people have suffered enormously, innocent people," he said.
Prime Minister Anthony Albanese and Foreign Affairs Minister Penny Wong have called for calm. (Dominic Giannini/AAP PHOTOS)
Foreign Minister Penny Wong said the ceasefire was a pathway to peace.
"There is the opportunity in the Middle East now for the Trump administration to take forward an agenda around greater stability and normalising, particularly given the weakened position of Iran," she told reporters in Washington.
Thousands rallied in Sydney and Melbourne on Sunday in solidarity with those affected by the conflict in the Middle East, which has left many grieving for lost family members.
Designated terrorist organisation Hamas took 250 hostages and killed 1200 people when it attacked Israel on October 7, 2023, according to Israel's tallies.
Israel's subsequent invasion of Gaza has resulted in more than 46,000 people killed, according to the local health authority, and the strip's more than two million residents mostly displaced.
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