A parliamentary inquiry has heard right-wing extremists are being inspired by the Christchurch massacre, with the Australian Security Intelligence Organisation (ASIO) warning of an increase in groups "who want to trigger a so-called 'race war'".

The Senate inquiry into right wing extremism has also heard from the Department of Home Affairs, who submitted they are seeing increasing numbers of Nazi imagery being imported in Australia, despite a national ban on such memorabilia.

It also raised an alarm about violent extremist groups targeting councils in Victoria.

Whilst most of this concern was focussed on various councils continued support for LGBTQ+ programs, last year saw a group of right-wing extremists interrupt a mourning ceremony at Merri-bek council in Melbourne's inner north on January 26.

ASIO - Australia's main security agency - said they had seen an uptick in ideologically motivated violent extremism (IMVE), a distinctive separation from religiously motivated violent extremism (RMVE) and said a quarter of their counter-terrorism workload was now focused on IMVE.

"IMVE - particularly nationalist and racist violent extremism - remains a threat and its adherents will continue to engage in offensive behaviours. IMVE views persist, and adherents are weaving new issues into their conspiracy theories and anti-establishment views," the ASIO submission stated.

"While we remain concerned about IMVE, we assess the vast majority of established nationalist and racist groups are more likely to focus on recruitment and radicalisation rather than attack planning in the foreseeable future."

The submission argued the March 2019 Christchurch Mosque attack, which saw 51 Muslim worshippers murdered in shooting massacre carried out by an Australian man who was active in right-wing circles online but had escaped the attention of authorities, was cited as "inspiration for NRVE (nationalist and racist violent extremist) attacks overseas, and the attacks continue to resonate with NRVEs here in Australia".

"Over the last 18 months, we have seen an uptick in the number of NRVEs advocating sabotage in private conversations both here and overseas. It is particularly pronounced among NRVE 'accelerationists' - meaning extremists who want to trigger a so called 'race war'," ASIO said.

ASIO said this uptick after the Christchurch massacre has been further fuelled by online activity during the COVID-19 pandemic, arguing: "Individuals of security concern are routinely using secure messaging apps, virtual private networks and fake emails to avoid detection".

During the Voice referendum, prominent neo-Nazis, including Thomas Sewell, gatecrashed the end of the No rally in Melbourne.

The group of people wearing black masks unfurled a banner on the steps of Victoria's parliament that read "Voice = anti-white" and performed Nazi salutes, which have now been banned in Victoria.

In their submission, home affairs said violent extremism was "hostile to democracy in Australia", arguing global researchers had labelled it a "radically anti-democratic movement".

"NRVE ideologies undermine trust in democratic institutions, erode social cohesion, stoke anti-multicultural sentiment, and reject equality—all enduring strengths of Australia's democracy. NRVE groups encourage intolerance, xenophobia and racism which places our social fabric under strain," the department said in their submission.

It said NRVE's have attempted to disrupt numerous Victorian council meetings over their support of LGBTQ+ programs, as well as using the pandemic to sow fear about multiculturalism, democracy and government overreach.

"NRVE groups have sought to disrupt democratic council processes through intimidating behaviour, false and misleading information and threats of violence. In one case, involving the Monash City Council, protestors besieged the chambers, disrupting council proceedings," the submission said.

The disruption on the Merri-bek council's January 26 day of mourning last year saw "racist extremists," who were clad in black with their faces covered, target the "celebration of survival," holding Australian flags and banners with racist slogans on them.

This year saw more than 60 neo-Nazis, wearing black balaclavas while brandishing Australian flags, swarm a Sydney train on January 26, with Prime Minister Anthony Albanese later commenting the men had "no role in Australia".

In their submission to the inquiry, the Australian Human Rights Commission recommended "enhancing legal protections against the harms of violent extremism and racism," in part by ensuring legal protections are enforceable under Australia's commitment under the United Nations Declaration on the Rights of Indigenous Peoples.

The inquiry is due to deliver its report by December 6.