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There is concern that some extremist Islamic clerics might evade repercussions by exploiting legal loopholes.
If an individual incites hatred against community members, causing them intimidation or fear of violence, they could face up to a five-year prison sentence.
The legislation notes, however, that quoting a religious text for educational or discourse purposes would not violate racial vilification laws.
The law seeks to target individuals who misuse their social influence to promote hatred or extremist violence.
Anyone who threatens violence against individuals, groups, or their property, including those close to them, will see their potential jail term rise from five to seven years.
The offence aims to crack down on leaders using their authority and influence in society to spread hatred or violent extremist views.
Major penalties for hate crime offences
Anyone threatening force or violence against persons or a group, as well as their property or a person close to them, will face jail time increased from five to seven years.
Aggravated hate crime offences will carry a 10-year penalty instead of a seven-year penalty and threatening or harassing someone through the mail will incur five years.
New grounds to refuse and cancel visas
This test will now include individuals who have previously spread hatred or extremism publicly, either online or overseas, have allegedly been involved in hate conduct, appear motivated to commit related offences or have alleged links to prohibited groups.

Home Affairs Minister Tony Burke will have additional powers to cancel and refuse visas under the proposed legislation. Source: AAP / Lukas Coch
A person rejected based on these hate-motivated grounds can also be permanently barred from future visa applications to enter Australia.
Expansion of hate symbol offences and police powers
People seeking to breach customs law by importing or exporting prohibited symbols or other violent extremist material will also face severe penalties.
New framework to list and criminalise ‘hate groups’
A new framework will allow the home affairs minister to prohibit groups found to be engaging in or advocating hate crimes based on race, nationality or ethnic origin.
Once the group is prohibited, it will be a criminal offence to be a member of the group, to participate in its activities, to engage in recruitment or training, or to provide support or financial assistance.
Firearm security checks
There will be an additional layer of security checks under the AusCheck system when approving firearms licences and reviewing current holders.

The government will introduce an additional layer of security checks under the AusCheck system when approving firearms licences and reviewing current holders, under the proposed legislation. Source: SBS News
Where necessary, states and territories will have access to classified intelligence from federal agencies, including ASIO and the Australian Criminal Intelligence Commission (ACIC).
It will also allow AusCheck to facilitate citizenship verification checks, in limited circumstances.
National buyback scheme
The bill establishes the grounds for states and territories to work alongside the Commonwealth to limit the number of firearms during a two-year buy-back period, review licensing requirements and the use of criminal intelligence in the process.