Tasmanians who display a Nazi symbol or perform a Nazi salute face the prospect of three months in jail or fines of more than $3500.
Legislation to outlaw Nazi symbols and salutes has passed the second reading stage at the Legislative Council, locking in the changes.
The Tasmanian government said banning the symbols and salutes sent a strong message against hateful and offensive conduct.
"Nazis will not have a refuge here in Tasmania, and this sends a very clear message that Nazi symbols and salutes are not welcome in Tasmania," Attorney-General Elise Archer said.
"Nazi displays are a blatant breach of both our moral and community standards, and I am very pleased we have delivered these reforms, which is the first of its kind in Australia, that will help us deliver a safer and more caring community for all."
The laws clearly state displaying the swastika in the context of the Buddhist, Hindu and Jain communities is not an offence.
They also allow for other legitimate displays of the swastika such as for other religious, cultural, academic and educational purposes, the government said.
Under the laws, people who display Nazi symbols without a legitimate purpose or perform Nazi salutes face up to three months' jail time, or a maximum fine of 20 penalty units.
Repeat offenders can face six months' jail time or a fine of 40 penalty units.
