The group, which has gone by a number of names including the European Australia movement, the National Socialist Network and White Australia, has been listed as a prohibited hate group, Home Affairs Minister Tony Burke announced on Friday after receiving advice from spy agency ASIO.
"This means that supporting, funding, training, recruiting, joining, or directing this group constitutes a criminal offence with a maximum penalty of 15 years in prison," Mr Burke told reporters at parliament house.
While the move wouldn't stop people from holding bigoted views, it would prevent them from holding meetings and rallies.
"It sends a clear message to people who believe in racial supremacy that their views have no place in Australia," Mr Burke said.
The group had "phoenixed" and changed its name to avoid scrutiny but still had many of the same members and carried out the same activities, Mr Burke said.
The White Australia movement is the second group to run afoul of anti-hate laws passed in the wake of the Bondi terror attack, after Islamist collective Hizbut Tahrir was listed as a prohibited hate group in March.
Mr Burke said he was first advised on April 22 that White Australia would likely meet the threshold to be listed, because it engaged in behaviour that would increase the risk of violence, and advocated or engaged in hate crimes.
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