"A memorial will be erected in the parliamentary gardens to all who perished, especially the 38 Australian victims," Abbott said at the Parliament house in Canberra.

It will be established on the first anniversary and as a reminder that we will never ever forget them, he said.

Malaysian Airlines flight MH17 was shot down by a missile over the restive eastern Ukraine leaving all 298 on board dead on July 17.

Describing the incident as not just a tragedy but an atrocity, the Prime Minister said: "It was a scheduled international passenger flight from Amsterdam to Kuala Lumpur, so basic humanity should have safeguarded its passage."

"Instead it was shot out of the sky," he added.

Meanwhile, the Opposition leader Bill Shorten also expressed his deep reservations at welcoming anyone to the country linked to MH17 shotting down, according to an ABC report.

There has been a call to ban Russian president Vladimir Putin from attending the G20 summit in Brisbane this November.

During a condolence motion in the Federal Parliament, Shorten said Labour looked forward to working with the Government to ensure the "strongest possible reaction from Australia".

"The seeking of justice, as the Prime Minister has indicated, cannot be shirked," he said adding, "The weapons of death were sophisticated and could not have been built automatically by the people who used them."

"So let me be very clear, I have the gravest reservations about welcoming to Australia anyone in the future who's engaged in this act of terror."

Australia has strongly criticised Russia's response to the tragedy.

However, Abbott had earlier said that it was too early to determine if Putin should be barred from attending the G20 Summit.

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