The report by the joint intelligence and security committee found the entirety of Hamas, along with four other groups, should be formally listed as a terrorist organisation.

Previously, only Hamas' military wing, the Izz al-Din al-Qassam Brigades, was formally listed.

The committee's chair Liberal senator James Paterson said the listing of all of Hamas would be in line with measures taken by the US and EU.

"The expert evidence provided to the committee overwhelmingly rejected the idea that Hamas' Izz-al-Din al-Qassam Brigades operates independently from the rest of the organisation," Senator Paterson said.

"Leaders of Hamas have repeatedly made statements which meet the advocacy test for terrorist listing, including direct incitement of acts of violence against Jewish people."

The committee agreed that Hamas operated as one entity and had overlapping members with the military wing.

However, the report warned the listing of all of Hamas may come with problems for government departments.

"Should the Australian government accept this recommendation, the committee acknowledges there will be some practical challenges for various agencies in implementing and adjusting to this decision," the report said.

The entirety of Hamas has been previously listed as a terrorist organisation in 2014, but was removed shortly after.

Australian Associated Press