NSW Police said the pair were wearing “face coverings and dark clothing” and were seen fleeing the scene.
“We need the public’s help to come forward and help identify these two individuals,” Commissioner Karen Webb told reporters.
Police said the car fire was extinguished shortly after firefighters were called to the scene in Woollahra, an eastern suburb of Sydney, around 01:00 local time (14:00 GMT).
Anti-Israel signs, including “Kill Israel” (sic), were found at the scene, scrawled on the fence of two properties and on cars.
Albanese said he had spoken to the Australian Federal Police (AFP) about the vandalism.
Earlier this week, law enforcement established a special task force to investigate incidents of anti-Semitism, including the alleged Melbourne terror attack and other vandalism in Woollahra last month. Police do not believe the two incidents in Woollahra are linked.
New South Wales Premier Chris Means said the latest incident appeared to be “specifically designed” to “intimidate the Jewish community in Sydney”.
“If the question is, can we do more? I think the answer is yes, and I’m not closing the door to amending the law,” he told reporters, adding that he had spoken with Israel’s ambassador to Australia, Amir Maimon.
New South Wales Jewish Council president David Ossip said his community was “deeply saddened” by what had happened, but that they “will not be intimidated”.
