Bob Carr, the centre-left Labour premier of New South Wales, said on Tuesday he would endorse a proposal by conservative federal government to list the group, which is responsible for several attacks against Israel, as a "terrorist organisation".
Under Australia's counter-terrorism laws, beefed up after the 11 September 2001 attacks on the United States, anyone belonging to, or training, funding or recruiting members for a banned "terrorist group" can be jailed for up to 25 years.
"I accept the Commonwealth Government's view, based on careful consideration of the intelligence available, that this organisation should be urgently outlawed in Australia," Carr said in a statement.
Attorney General Philip Ruddock said last week he planned to outlaw another organisation as a "terror group", but refused to reveal the name of the group.
Under new laws passed in March, the government is able to impose instant bans on groups suspected of terror activities
even if they are not listed as such by the United Nations
Security Council and without parliament's immediate approval.
Parliament then has 15 days to overturn any ban.
Last year, the government had to draw up separate pieces of
legislation to outlaw Lebanese party Hizb Allah, leading Palestinian resistance group Hamas and the Pakistan-based Lashkar-e-Taiba as "terrorist groups".