Independent Senator Lidia Thorpe has described the attack on Camp Sovereignty in Naarm by far-right demonstrators as an "act of terror against Aboriginal people".

Footage obtained by National Indigenous Times shows men dressed in black attacking people at the camp in King's Domain on Sunday, during nationwide anti-immigration rallies.

A 16-minute Facebook Live video, posted shortly after 5 p.m., captures camp members calling for peace and urging the intruders to leave.

"This was not random violence. These racists launched their attack at the time we regularly hold community gatherings for weekly healing ceremonies," a statement from Camp Sovereignty said.

"These ceremonies are dedicated to honouring our ancestors, promoting peace and unity, and working to heal the wounds of genocide and the deep rift imposed between First Nations peoples and settlers. To target us at this moment reveals that their true intent is to desecrate what is sacred and to violently disrupt our efforts at collective healing on behalf of racism, fascism and white supremacy."

On Monday, Senator Thorpe said the attacks, which allegedly included known neo-Nazi leader Thomas Sewell, showed "racism out on full display," calling it an "unprovoked, coordinated Nazi attack on Aboriginal people".

"These thugs violently assaulted community members, including young women, in what was clearly a racially motivated attack. It must be investigated as a hate crime," Senator Thorpe said.

"The aim of this attack was to cause fear and terror in the hearts and minds of our people, and Black and Brown people across the country."

The men were seen verbally abusing camp members and stomping on the Aboriginal flag. Some protesters also chanted, "Aussie, Aussie, Aussie, oi oi, oi," before fleeing as police arrived.

As of Monday morning, no arrests had been made.

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"Rightwing extremism is the biggest threat to this country, and yet police did not follow the neo-Nazi protestors to Camp Sovereignty, and didn't interfere in their violent attacks, nor did they seem to arrest anyone afterwards," Senator Thorpe said.

"The perpetrators of these vicious attacks need to be held accountable for the harm they caused, not just to those at Camp Sovereignty but also for instilling fear in our communities."

The camp, established by Senator Thorpe's uncle, Krautungalung Elder Robbie Thorpe, is described as a place of peace where community can gather, yarn and reflect. It stands at the resting place for the repatriated remains of 38 Aboriginal Victorians.

"This violent Nazi attack was a clear attack on First Peoples and our ancestors," Senator Thorpe said, warning that racism is flourishing in Australia and is a "direct threat to the safety of First Peoples and people of colour".

"To see it so blatantly on display over the weekend should bring deep shame to this nation. To see politicians and sections of the media supporting and participating in these marches is reprehensible."

Federal Senators Pauline Hanson and Malcolm Roberts attended the Canberra rally, which drew criticism from both major parties.

"Let's be very clear. Let's not be coy about this. They weren't protesting immigration from white Western countries. They were very clearly protesting immigration from countries that have brown people," Minister for Multicultural Affairs Anne Aly told ABC Radio.

"One of the very clear calls to action that was listed there was anti-Indian immigration, against people coming from India. Now that, to me, is clearly racist when you target a specific ethnicity."

Minister for Indigenous Australians, Malarndirri McCarthy, condemned the "violent and unprovoked attack" on the camp in the "strongest possible terms".

"My thoughts are with those injured and others impacted," she said, noting the police are investigating the matter.

"All Australians have the right to feel safe and welcome in our community. There is no place for any type of hate or violence in Australia."

ANTaR Victoria's Chair, Matt Bell, was equally as forthright, arguing the attack was done by neo-Nazi's who "act out of fear and weakness and cling on to a shallow ideology of ignorance and hatred".

"Camp Sovereignty is not only a site of resilience and resistance by First Nations people, it is also a sacred meeting place site," he said.

"That the attack occurred after the so-called 'March for Australia' demonstrates the racist motivations behind this obscene movement that disrespects the First Nations and the many other peoples that live on these lands and waters. We call on the police to ensure the protection of Camp Sovereignty and the arrest of the perpetrators of this violence and defilement."

Victorian Greens leader Ellen Sandell called the incident "deeply disturbing".

"First Nations people are leading a movement for truth and justice that makes our whole community stronger, and this racist attack is an attack on all of us," she said.

Senator Thorpe added that while some people may have joined the rallies over cost-of-living or housing concerns — issues she argued "governments continue to largely ignore" — that could not excuse their actions.

"Standing with Nazis and racists should never be acceptable," she said.

"We know neo-Nazi groups exploit people's concerns and racist fears to spread hate and division. Together we must recognise this and call it out. Racism is never the answer — it will only drive this country further down the dangerous path of division and violence, towards white supremacy, which we clearly saw on Sunday."