Nazi symbols risk jail term under proposed federal law

Selling Nazi memorabilia will also be made an offence and banned in retail and online stores.

However, the Nazi salute will not be banned because it falls under the jurisdiction of states and territories.

Attorney-General Mark Dreyfus will this week introduce the proposal to outlaw the two Nazi symbols Hakenkreuz and Schutzstaffel.

At a partyroom meeting on Tuesday, Mr Dreyfus assured his colleagues the legislation would not affect the use of the swastika for people observing Hinduism, Buddhism and Jainism.

Displaying the symbols for journalistic, educational or artistic purposes is also expected to be exempt from the ban. 

Mr Dreyfus told his colleagues the proposed amendment would not create a process for other hate symbols to be added, and that would need to be done through further amendments. 

The proposal has been welcomed by Jewish organisations and the national spy agency which believed outlawing Nazi symbols could help stop extremist radicalisation and recruitment.