Car set alight, properties vandalised with anti-Israel graffiti at ...

Prime Minister Anthony Albanese has condemned the anti-Israel graffiti sprayed on properties in Sydney's east in what authorities have described as an anti-Semitic attack.

NSW Police said they were called to Magney Street in Woollahra at 1am on Wednesday to reports a car was engulfed in flames.

Officers found two vehicles, including the car on fire, the fence of two homes and footpath graffitied with "Kill Israiel [sic]" and other offensive slogans.

NSW Police set up a crime scene in the area and said officers wished to speak to two people, aged between 15 to 20 years old, who were in the vicinity at the time. 

Assistant Commissioner Peter McKenna said the car that was set alight was one the offenders drove to the area.

"So it is the graffiti itself, the anti-Semitic remarks, that they have spray-painted on those houses and footpath, that we are investigating," he said.

A crime scene was set up at Woollahra in Sydney's eastern suburbs. (ABC News: Berge Breiland)

NSW Police Commissioner Karen Webb said two males were seen running from the area.

"The perpetrators were disguised and we need public assistance to come forward and help identify those two people and any information they have is welcome," she said.

"There is no place for hate of this nature in Sydney or anywhere in Australia, and we will be using all our resources to investigate this matter."

Mr Albanese said the act of vandalism was aimed at "promoting fear" in the community.

"[Anti-Semitism] diminishes us as a nation, when we have events such as we saw here again overnight," he said at a press conference.

"The latest attack ... is completely abhorrent to who we are as Australians."

Anthony Albanese said he had spoken to the Australian Federal Police commissioner about the incident. (ABC News: Ian Cutmore)

Mr Albanese announced $8.5 million would be spent on the redevelopment of the Sydney Jewish Museum.

He said about 55,000 people have visited the museum this year, including school students.

"I want them to learn about this history," Mr Albanese noted.

The prime minister said he had spoken to the Australian Federal Police commissioner and would be briefed by officers from a new anti-Semitism task force.

"There's no place for anti-Semitism in this country or anywhere else for that matter.

"This is an attack on people because they happen to be Jewish."

Police and firefighters responded to reports of the car fire and graffiti. (ABC News)

NSW Premier Chris Minns described the incident as a "hate crime" designed to strike fear into the Jewish community. 

Mr Minns said the location of the incident and sequence of events pointed to it being an anti-Semitic attack. 

"This is not simply just an act of vandalism on the streets of Sydney. We need to call it out for what it is," Mr Minns said. 

Premier Chris Minns said it was an "anti-Semitic attack". (ABC News: Ethan Rix)

Sydney's eastern suburbs are home to a large Jewish community.

"Those communities migrated to Australia specifically and precisely to avoid this kind of hatred and division," he said.

Two men have been charged with more than 20 offences each after buildings were vandalised and a car set on fire in another part of Woollahra on November 21.

Yesterday an arson attack at the Adass Israel Synagogue in the heart of Melbourne's Jewish community on Friday was declared as a "likely terrorist incident" by authorities.

Police say there are three suspects in that incident but no-one has been charged.

Assistant Commissioner McKenna said it was not believed the overnight attack and the one last month were linked.

Police are investigating the lighting of the car and graffitiing of anti-Israel slogans. (ABC News)

Rabbi Benjamin Elton, chief minister of Sydney's The Great Synagogue, said the vandalism in Woollahra was "not an isolated incident" following recent attacks.

"This is now a pattern, and it's reached a new level of seriousness ... we've reached a new low of racism in our country," Dr Elton said.

Benjamin Klein, a board member of Adass Israel Synagogue, said it was "really quite scary" to see anti-Semitism continue to fester in Australia. 

"People have to wake up, the government has to see, the police have to see, that this is something that really needs to be sorted through and stamped out," he told ABC News Breakfast.

NSW Police say they found a Toyota Corolla engulfed in flames and properties vandalised with anti-Israel graffiti. (ABC News: Berge Breiland)

In a statement, Executive Council of Australian Jewry co-chief executive Alex Ryvchin said the Australian Jewish community had awoken to scenes of "terror and devastation".

"Another act intended to terrorise us, drive us from our country and make our fellow Australians fearful of associating with us," Mr Ryvchin said.

"We expect the new AFP task force to bring the perpetrators swiftly to justice."

Zionist Federation of Australia chief executive Alon Cassuto described the incident as a "vile act".

"Jew-hatred is escalating into domestic terrorism, fuelled by the demonisation of Israel and a persistent failure to call out incitement," Mr Cassuto said.

NSW Police say they found a Toyota Corolla engulfed in flames and properties vandalised with anti-Israel graffiti. (ABC News)

Federal MP for the area Allegra Spender said people were devastated.

"We want to be extremely clear that this sort of behaviour is unacceptable and is not tolerated in our community and the best way to convince people of that is actually for people to be arrested and charged," she said.

NSW Member for Vaucluse, which includes Woollahra, Kellie Sloane said the community was in shock and Jewish locals felt scared.

"I spoke to a couple of people this morning, a Jewish lady and her daughter, and they were in tears," Ms Sloane said.

"This is an attack by a couple of cowards who have come into this street in the middle of the night with spray paint and evil intent in their hearts."

A statement from the NSW Faith Affairs Council described the incident as "an act of hatred".

"This is an act designed to intimidate and distress members of our community. We condemn hatred directed against any community in Australia," the statement said.

 "Hatred has no place in religion. It has no place in NSW."