I have not been to Isreal in a number of years, and for safety reasons I would not go now.
To evaluate what the Australian government says go to
http://www.smartraveller.gov.au/zw-c..._and_West_Bank
They rate the country as "Reconsider your need to travel", which is between "High degree of caution" and "Do not travel".
UK travel advice is at
http://www.fco.gov.uk/servlet/Front?...=1013618385504
You can also check the US Government travel warning on Isreal, but I always found their warning to the "politically correct" and understated concerning Isreal safety.