The controversial items were auctioned at Armitage Auctions, despite receiving criticism from both the state government and the Anti-Defamation Commission.

Several Nazi items were up for auction on the day, including a Second World War German Iron Cross, a SS Panzer officer's ring, a Hitler Youth belt and Luftwaffe officer's sash.

Among the highest sellers at the auction was the SS ring, going for $1000 by an over-the-phone buyer.

The Hitler Youth belt buckle sold for $500 and a German Police belt buckle sold for $525 to unknown buyers.

During Question Time in State Parliament on Wednesday, Premier Will Hodgman urged the auction house to do the right thing and reconsider selling the items.

"Noting this particular organisation is not breaking any law, it clearly does break a community standard and it does create unnecessary distress and concern to our Jewish community," Mr Hodgman said.

"There is a place for things like this, including in museums and other places that reflect on atrocities committed in the past."

In a statement, Armitage Auction's Neil O'Brien said "Whilst we obviously condemn what happened in the war along with similar atrocities throughout history, people are interested in artefacts associated with these events."

"People do not realise by many of the items we are discussing were brought back into the country by our servicemen who collected them during the war."

Anti-Defamation Commission chairman Dr Dvir Abramovich echoed Mr Hodgman's comments, adding the "disturbing effects belong in museums, not in the possession of fanatics who are determined to glorify Hitler and his henchmen."

"The dark obsession and booming demand for Third Reich paraphernalia is alarming, and is an affront to all Australians," Dr Abramovich said.

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