Rival protest groups were kept apart by police as they converged on a park in central Bendigo, Victoria, on Saturday afternoon.
Pro-diversity activists rallied at the town hall from midday and then marched several blocks to the park where a large gathering of anti-mosque protesters were to meet from 2.30pm.
There were concerns the groups would meet on the street, but hundreds of police have managed to keep the two groups apart.
Mounted police and the dog squad also attended.
Both groups marched to the park after holding rallies in different parts of the city.
Anti-mosque protesters were shouting “Aussie, Aussie. Aussie, Oi Oi Oi” and “no mosque”.
Some pPro-diversity protesters shouted: “Nazi scum off our streets.”
The opposing groups assembled either side of a fenced moat in the park, which provided police with an additional layer of security in keeping them apart. A line of police separated the groups including officers in riot gear.
Earlier, police removed one man from the pro-diversity rally outside the Bendigo town hall. The man was identified by the crowd as being part of the anti-Muslim protest.
He attempted to walk through demonstrators with a camera and scuffles broke out after someone grabbed it and ran off with it, members of the crowd said.
Police dragged the man over a barrier and restored calm.
“These fascists, racist bigots will not march uncontested in our streets,” a speaker told the crowd and drew a large cheer.
