Laws banning the display of Nazi symbols such as the swastika have passed the House of Representatives.
Under the laws, any display of the Nazi swastika or the SS symbol would be banned, with the selling of Nazi symbols similarly prohibited.
Government amendments introduced earlier this week also prevent the Nazi salute being performed in public.
The laws passed the House of Representatives with bipartisan support, and will move to the Senate for debate.
They come following a rise in anti-Semitism and the use of Nazi symbols by far-right groups.
Attorney-General Mark Dreyfus said in introducing the amendments the government was drawing a line in the sand on glorifying hatred.
"The amendments will ensure that no one will be allowed to glorify or profit from acts and symbols which celebrate the Nazis and their evil ideology," he said.
"There is absolutely no place in Australia for hatred, violence and anti-Semitism."
While the hate symbol laws initially included a ban on the Islamic State flag, it was removed from the bill.
Instead, a new offence will be created to cover symbols used by proscribed terrorist organisations.
Private collectors of Nazi materials or war souvenirs will not be caught up in the hate symbols, but will be banned from selling them.
Other swastikas used by other religions such as Hinduism and Buddhism will not be subject to the ban.
