Prime Minister Scott Morrison has condemned the "ugly racial protests" at Melbourne's St Kilda beach involving right-wing extremists and anti-fascists.
Mr Morrison thanked the hundreds of Victorian police officers who took to the air, sea and land to control Saturday's event, while calling Australia the most successful migrant country in the world.
"This has been achieved by showing respect for each other, our laws and values and maintaining sensible immigrations policies," the prime minister tweeted on Sunday morning.
"Let's keep it that way, it makes Australia stronger."
Mr Morrison has remained quiet about independent Queensland Senator Fraser Anning, who attended the right-ring event alongside its organisers, convicted criminals Blair Cottrell and Neil Erikson.
The pair claim the rally was a response to recent incidents in which youths have mugged people along the bay.
One person was arrested for possessing drugs, another for breaching bail and a third for carrying weapons - large fishing sinkers - at the duelling rallies.
Several hundred people attended the rallies, the first held by anti-racism campaigners ahead of the right-wing event.
Senator Anning, who now sits as an independent after being booted from the Katter Australia Party following his defection from Pauline Hanson's One Nation, uploaded several videos to his Facebook page from the rally.
In the videos, Senator Anning stands with Cottrell, poses for photos and makes inflammatory remarks about migration.
Independent Wentworth MP Kerryn Phelps says the rally should be called out for being a "demonstration by a neo-Nazi group".
"I don't believe it has any place in Australian society," Dr Phelps told the ABC today.
"We have a harmonious, multicultural community and I think Australians want to keep it that way and these kinds of demonstrations are not what I would like to be seeing in Australia."
Greens Senator Sarah Hanson-Young said the government should refuse to take Senator Anning's vote after his involvement in the event.