no reason for the Australian Government to not do business with Israeli companies if they provide a product/service that the government needs

Not supporting a country whose military and leadership are committing war crimes, crimes against humanity, and running an apartheid regime is the reason. Its not rocket science.

In what small ways a country like Australia can push back against the persecution of these people, especially when its an erstwhile ally of ours committing them, we should, and stand up for the rights of humanity.

Be sure to remember there is also self interest as well as morals here. After all we Australians might one day come to rely on the safe harbours these international conventions provide that the Israeli’s (among others) are ignoring and pissing all over.

If there is no reaction and cost for these crimes, we can pack the international institutions up and lock our borders in the very real knowledge that others will come for us and our ‘stuff’, and human history shows ‘they’ always come.

Thats not a world Israelis, Australians, Palestinians or any others should want to live in. Better we call Israel out and try to reduce as much disintegration of international norms as is possible for a middle power to do.

Edit: considering the seeming Israeli worldview maybe its arguable to say they already think they live in that kind of a world. In which case Australians should be acting to dissuade Israelis of that notion, by committing to and enforcing international norms, including in attempting to check Israel.