Police are hunting a group of alleged neo-Nazis who unfurled an anti-Semitic banner on the steps of Victoria's parliament for a photo opportunity.
About 20 men wearing black clothing and face masks allegedly posed for photos late on Friday with three large signs, including one that targeted Jewish people.
Victorian Police Acting Superintendent Kelly Walker said the men, who were accompanied by a photographer, fled when police arrived to arrest them.
"The sign was intended to cause unrest to the community," she told reporters on Saturday.
"Police have been able to identify one of the men who was present and they'll be making all inquiries to apprehend him."
Ms Walker said investigators were working to identify the other 19 men involved in the incident and they could be charged with grossly offensive behaviour.
"We'll seek advice under the racial religious tolerance act," she said.
Police described the men's alleged behaviour as "terrible and disgusting" saying members of the public were outraged.
Two parliamentary security officers on the scene raised the alarm with police and worked to keep the alleged neo-Nazis and angry bystanders separated.
"We had a large number of men that appeared to be taking a photo opportunity," Supt Walker said.
"Members of the public were not happy ... They were yelling at the men."
Premier Jacinta Allan and Opposition Leader John Pesutto condemned the men's actions, with Ms Allan saying such incidents were why her government introduced legislation to toughen anti-vilification and social cohesion laws.
"We want to make it impossible for Nazis to function in this state - not just by banning their symbols and salutes of hate, but by putting their vilifying threats and incitements in the Crimes Act, where they belong," she posted on X.
Mr Pesutto condemned the men's actions, saying they were a threat to the community.
"It seems that fire bombings of synagogues and Nazis on the steps of parliament are the new normal in Victoria," he said.
"It was not only a despicable attack on Melbourne's and Australia's Jewish community but it was clearly a broader attack against diversity."
