Right-wing terror threats make up roughly 30 per cent of ASIO's current counter-terror caseload, as the head of the agency warns they are growing in prominence to try and recruit more members.
ASIO Director-General Mike Burgess was questioned during a Senate Estimates hearing whether recent public demonstrations signalled a growing threat from Neo-Nazi groups.
Mr Burgess suggested while the demonstrations are becoming more brazen, they are primarily aimed at driving recruitment, and do not necessarily indicate a growing terror threat from Neo-Nazi groups.
He argued the greatest threat of a terror attack comes from an individual acting alone, likely with little or no warning, and possibly frustrated with a lack of action from any group they may be a part of.
"In the case of the Neo-Nazi groups, what we worry about the most is people who join a group, or get drawn into that ideology, and are not satisfied there is no action and go off and do it themselves," he said.
Neo-Nazis have publicly gathered on a number of occasions in recent months, including a violent demonstration involving about 20 people in Melbourne earlier this month.
In March, Neo-Nazis gathered to support a prominent anti-transgender activist at a Melbourne rally, performing Nazi salutes.
How right-wing groups are avoiding being listed by ASIO
Mr Burgess was questioned on whether the public demonstrations indicated a greater threat.
"It's a sign that those groups are more emboldened to come out publicly, to push what they believe in and recruit to their cause," he said.
"Does that mean there's been an increase in the numbers of them? I don't see that correlation, I think they're just more emboldened.
"We have seen a rise in people drawn to this ideology, for reasons we don't fully understand."
Mr Burgess said it could be that the recent Neo-Nazi activity has been aimed at building influence, and trying to legitimately influence politics and public discourse.
He was asked if there was any evidence Neo-Nazis had sought to infiltrate political parties.
"I would not talk about specific things we're looking at directly, I can assure you if we saw that it would an interesting thing we would have to consider investigating," he said.
"Threats to security are well-defined, it's not unlawful for people to have a Neo-Nazi ideology in this country."
In evidence given to the estimates hearing, Mr Burgess said while ideologically-motivated extremism (mostly far-right groups) make up roughly 30 per cent ASIO's current caseload, religiously-motivated extremism takes up the other 70 per cent.
Greens Senator David Shoebridge questioned the ASIO director on why only three of the 29 'listed' terror organisations are right-wing groups, given the 70-30 split.
When a terror organisation becomes 'listed', it becomes illegal to be a member of such a group, or provide funding or resources to it.
The first right-wing group to be listed was the 'Sonnenkrieg Division', a UK-based group, which was listed in 2019.
Mr Burgess said the right-wing groups are often "smarter" and avoid publicly advocating terrorism, which would see them listed.
"To be listed, that group has to actually promote and advocate acts of terrorism. So it's a high penalty with a high threshold, if you don't cross that threshold you don't get penalised and listed," he said.
"And the reason we are where we are is those (listed) groups have actually pushed and advocated for acts of terrorism, where other groups are sadly smarter and don't do that publicly.
"Because that's what the law, as it currently stands, requires them to do."