More than 100 anti-racism protesters are confronting members of the far-right, anti-Islam Q Society preparing to attend a fundraiser to be headlined by Senator Cory Bernardi and Queensland MP George Christensen.
The protesters have blockaded the entrance of the marina where those attending the fundraiser began meeting at 5.30pm.
Anti-racism activists have surrounded a bus that was due to transport Q Society supporters to an undisclosed location where the fundraiser will be held.
Some protesters are rocking the bus, while others jostle Q Society supporters as they try to board.
One man grabbed another man by the throat in the fracas.
More protesters are holding signs and shouting slogans including, "Racist, sexist, anti-queer Cory is not welcome here".
"As long as we can all get off safely with our views expressed, I'll be happy," said a Q Society member, who declined to give his real name.
About 10 people managed to board the bus, but two people later stepped off, saying they were frustrated at going nowhere.
Secrecy surrounded the fundraising event, with guests forbidden from knowing the location ahead of time. Somehow, protesters got wind of the arrangements. By mid-afternoon, far-left activists were circulating details of the meeting point, and urging supporters to head down to the marina to "Reclaim St Kilda".
Liberal Party defector Bernardi and LNP MP George Christensen, who remains in the Turnbull government tent, were billed as the star attractions at Friday night's "Halal Choices" dinner in Melbourne.
The fundraiser is being held to raise money for the legal defence bill of leading Q Society member, Kirralie Smith, who is being sued for defamation by Halal certifier Mohamed El-Mouelhy. The case revolves around Mrs Smith's videos about halal certification practices.
Q Society members frame the case as an attack on free speech and estimates their defence bill will be $1 million.
Fairfax Media was invited to attend the fundraiser in Melbourne, but late on Friday, the official invitation was rescinded: organisers were apparently unhappy about an article published, which described the off-colour homophobic and anti-Muslim comments made at a Q Society event in Sydney on Thursday night.
Cartoonist Larry Pickering was a VIP guest at the Sydney fundraising dinner.
He told the audience, "Let's be honest, I can't stand Muslims. If they are in the same street as me, I start shaking."
Then the cartoonist, who had donated for auction one of his own works depicting the rape of a woman in a niqab by her son-in-law, softened slightly.
"They are not all bad, they do chuck pillow-biters off buildings."
With Jaqueline Maley
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