Queensland will ban the public display of hate symbols including swastikas.
It follows similar moves in Victoria this month, with that state introducing fines of up to $22,000 or 12 months in jail.
The Premier has confirmed the government will consult with the legal community with a view to introducing legislation into state parliament in the second half of this year.
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Earlier this month swastika symbols and the Nazi slogan “blood and soil” were plastered over a ballast carriage in a rail holding yard south of Brisbane.
In October, members of the Jewish community were confronted with a Nazi flag that was being flown from an apartment window right near the Brisbane synagogue.
Police seized the flag and charged a 45-year-old man with public nuisance.
“We do not do this lightly or without good reason. These crimes are not harmless. Nor are their ideologies,” Premier Annastacia Palaszczuk said.