The bill, introduced by shadow attorney-general Michaelia Cash, is currently the subject of a parliamentary inquiry.
It would outlaw the display of Nazi insignia, including the swastika and the Nazi salute, with a penalty of up to 12 months in prison.
The law would not apply to educational, historical, journalistic or artistic displays, nor to religious ones in connection with Buddhism, Hinduism, or Jainism.
Cash’s proposal followed the presence of a number of black-dressed men who performed the “Sieg Heil” salute at an anti-trans rally in Melbourne last month.
It follows a raft of state-based measures in force or in progress around the country.
Victoria is currently putting together legislation to ban the salute, while the display of Nazi symbols was outlawed in June last year.
NSW followed in August, while Queensland, Tasmania, Western Australia, South Australia are also considering similar legislation.
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Among the many submissions received on the proposed federal bill, ASIO told the parliamentary inquiry the ban “would assist law enforcement in early intervention”.
“Nationalist and racist violent extremists (NRVE) adopt specific imagery and terminology to signal their ideology, build in-group belonging between adherents, and provoke or intimidate ideological opponents,” ASIO said.
“Nationalist and racist groups in Australia continue to focus on radicalisation, recruitment and preparing for what they believe will be the inevitable collapse of society and the opportunity to implement their beliefs.”
The submission noted that extremist far-right groups were more focused on spreading their beliefs, despite holding an in-principle commitment to violence.
A greater danger was posed by lone actors who may be motivated by those beliefs.
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