Brisbane punk band Big Bongin' Baby were kicked off stage during a gig at Brisbane's The Bearded Lady on Saturday night for displaying swastika flags during their set.
Supporting London-based outfit Lucy & The Rats, Fairfax Media reports punters grew increasingly distressed when the band revealed the flags before the music was cut.
Speaking to Fairfax, The Bearded Lady's general manager Jamie Simmonds said he "was pissed off".
"We do not condone what they did and we definitely don't accept racism, sexism or homophobia at our venue," he said in the statement.
"We are known to be a safe space for not only staff but for punters who enjoy music and for this to happen is not good.
"I feel like we've let people down in letting these idiots up on stage."
The news comes after Aussie rockers Cosmic Psychos distanced themselves from a man found to be wearing their merchandise and holding a SS helmet at a far-right protest in Melbourne over the weekend.
The Music has reached out to Lucy & The Rats and the venue for comment.
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