Public displays of the swastika or SS insignia could attract a sentence of up to a year in jail. But the laws will not apply to the Nazi salute.

Several states have already outlawed Nazi symbols, but the government’s announcement extends this ban across the country.

The decision follows an increase in far-right activism in Australia.

In March, neo-Nazis made an appearance at a Melbourne rally organised by Kellie-Jay Keen-Minshull – a figure known for her stance against transgender rights – and performed Nazi salutes outside the Victorian Parliament.

Ms Keen-Minshull refuted any association with the group, but the incident incited a backlash and demands for more stringent measures to address displays of Nazi paraphernalia.

“There is no place in Australia for symbols that glorify the horrors of the Holocaust,” said Attorney General Mark Dreyfus as he announced the new legislation.

“We will no longer allow people to profit from the display and sale of items which celebrate the Nazis,” he added.

The ban extends to the trading and public exhibition of flags, armbands, T-shirts, badges, and the online promotion of Nazi ideology, explained Mr Dreyfus.

However, public displays of the Nazi swastika and SS insignia will be permitted for academic, educational, artistic, literary, journalistic, or scientific purposes.

The Nazi salute falls outside the purview of this legislation, with its regulation being a responsibility of state authorities. Victoria and Queensland had already established bans earlier this year.

The legislation was drafted to exclude the display of the swastika in religious settings. The Nazi swastika is adapted from the one used as a sacred symbol in Hinduism, Buddhism, and Jainism. The word ‘swastika’ means “health, luck, success, prosperity” in Sanskrit.