Politicians expressed outrage over the torching of two cars, which were also defaced with anti-Jewish slogans, and the splashing of red paint on a house in Sydney's eastern suburbs during the early hours of Friday.
Residents told AAP they believed the attack was a case of mistaken identity as the home was previously owned by Executive Council of Australian Jewry co-chief executive Alex Ryvchin.
Two cars were set alight and daubed with offensive anti-Semitic graffiti. (Neve Brissenden/AAP PHOTOS)
Locals said the current residents were not Jewish.
Mr Ryvchin was not immediately available for comment.
NSW Premier Chris Minns said everything possible was being done to catch the perpetrators.
"This is a disgusting and dangerous act of violence that is the latest example of a rising level of anti-Semitic attacks in our community," he said.
"Civil society stands united in condemning this flagrant racism."
There were no reports of injuries in the attack, police said.
"The NSW Police Force takes hate crimes seriously," a statement said.
One local resident, Laura Tate, said the Jewish community was waking up every morning with "their heart in their mouth" as they waited to learn about the latest incidents that had unfolded overnight.
"It's becoming untenable - it's relentless, we feel exhausted," she said.
Another resident, Shannon Lancour, said the incident was scary and she was "absolutely heartbroken" to learn it was another anti-Semitic attack.
"(We're) just hoping that this hate can go away," she said.
The state's police minister called it a "disgusting act of hatred that will not be tolerated".
"There is no place for hatred or anti-Semitism in our society," Yasmin Catley said.
The latest incident follows an arson and graffiti attack on a synagogue in the inner-Sydney suburb of Newtown on Saturday, and the firebombing of a Melbourne synagogue in December.
NSW Jewish Board of Deputies president David Ossip said he was "profoundly disturbed and sickened to wake up to news of yet another anti-Semitic attack".
"Criminal acts like these, perpetrated by masked cowards and thugs in the dead of night, are intended to menace and intimidate the Jewish community and further fragment our social cohesion," he said.
"The hate-filled criminals who are perpetrating these crimes need to know that their campaign of domestic terrorism will not succeed, the Jewish community is resilient, strong and unbowed and will continue to be so."
Zionist Federation of Australia chief executive Alon Cassuto said the attack "isn't just an assault on Jews, it's an attack on all Australians".
"A ceasefire on the other side of the world won't stop this, our governments must act decisively at home to ensure Jewish Australians are safe."Â
Residents say the repeated anti-Semitic attacks are frightening. (Bianca De Marchi/AAP PHOTOS)
But Attorney-General Mark Dreyfus, who is Jewish, said he was hopeful the scheduled ceasefire in Gaza could reduce community tensions in Australia.
"The recent rise in anti-Semitism we've seen over the last year has been the worst that I've seen in my lifetime and it's been shocking," he told ABC radio.
"The Albanese government has pulled all of the levers it can to combat this scourge in Australia but it's rightly called the world's oldest hatred, it's hard to stamp it out."
Prime Minister Anthony Albanese has called the latest incident "another anti-Semitic attack that is against everything that we stand for".
But he welcomed the Australian Federal Police charging a man on Thursday with making death threats to members of a Jewish organisation, the first charges laid by a new task force targeting anti-Semitic incidents.
Opposition Leader Peter Dutton branded the perpetrators terrorists.
"These people are terrorists and they are targeting people to intimidate them, to scare them," he told Nine's Today show.
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