Australian Prime Minister Anthony Albanese has announced a royal commission, the country's most powerful independent inquiry, into last month's shooting at Bondi Beach.

The attack targeting a Jewish festival left 15 people dead, making it one of the deadliest in the country's history.

Albanese had previously argued that reforms on gun ownership and hate speech, steps to tackle antisemitism and a review into intelligence and law enforcement agencies offered the quickest response.

But following weeks of public pressure, he said on Thursday that a royal commission was the best way forward after he had taken "the time to reflect" and meet with the Jewish community.

"I've repeatedly said that our government's priority is to promote unity and social cohesion, and this is what Australia needs to heal, to learn, to come together in a spirit of national unity," he told reporters in Canberra. "It's clear to me that a royal commission is essential to achieving this."