Australian Prime Minister Anthony Albanese condemned as an "anti-Semitic outrage" an attack early Wednesday on a Jewish suburb of Sydney in which buildings were daubed with anti-Israel slogans.

Three people are on the run following the arson after it was declared a likely terror attack on Monday, with investigators from Victoria Police, Australian Federal Police and spy agency ASIO leading the probe. An Islamic school bus in Adelaide was also set alight earlier this week.

Vandals attacked a Jewish area of Sydney overnight, torching a stolen car and scrawling antisemitic words on walls, prompting a swift response from authorities who say antisemitism has no place in multicultural Australia.