Federal Treasurer Josh Frydenberg says he finds the presence of Nazi memorabilia in the Australian community "abhorrent".
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His comments come after Nazi items were sold at Armitage Auctions in Launceston last week, including an Iron Cross, an SS officer's ring, a Hitler Youth belt and a Luftwaffe officer's sash.
The ring alone fetched $1000, snapped up by an over-the-phone buyer.
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Mr Frydenberg's comments regarding the Launceston auction follow strong remarks last Wednesday from Premier Will Hodgman, in which he said the auction of the materials broke "a community standard" and said he'd consider the idea of banning the sale of Nazi memorabilia in the state.
"I understand Will Hodgman's had a few comments to say [about this]," Mr Frydenberg, a Jewish man, said in Launceston on Tuesday.
"I find Nazi memorabilia abhorrent in the Australian community."
Mr Frydenberg then spoke about instances of anti-Semitism that had recently occurred on the mainland, including the example of a promotional poster for a theatre production of The Diary of Anne Frank being vandalised with a swastika on the weekend.
"It's disgraceful," he said. "It's a criminal act and these criminals have no shame."
The Kooyong MHR said anti-Semitism in Australia was particularly egregious "when you think about the many Australian lives that were lost [to] the Nazi tyranny".
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"We fought for our values: our values of freedom, democracy, equality," Mr Frydenberg said. "And these were protected and enhanced by the defeat of the Nazi leadership."
"Unfortunately, we have seen a rise in anti-Semitism across Australia and, indeed, across many parts of the world."
Mr Frydenberg had his corflutes vandalised in his Victorian electorate of Kooyong during the 2019 federal election, with graffiti swastikas appearing on signs featuring his image.
New South Wales Liberal MHR Julian Leeser, who is also Jewish, had his signs vandalised with similar anti-Semitic graffiti during the campaign as well.
Armitage Auctions auctioneer Neil O'Brien has previously apologised to anyone affected by the auction house's decision to sell the Nazi memorabilia.
"Whilst we obviously condemn what happened in the war ... people are interested in artefacts associated with these events," he said.
"I wish that we did not have to make a decision on morally what we should do or should not be selling - it would be easy to make these decisions if there were clear laws guiding us."