A widely condemned neo-Nazi rally outside a state parliament has sparked a review of why police allowed the event to go ahead amid questions of how to combat similar anti-Semitic stunts.

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Federal Nationals leader David Littleproud said the "disgraceful" display outside NSW parliament on Saturday should never have been green-lit by police.

"These sorts of animals shouldn't be allowed on the streets to chant that sort of hate," he said on Sunday."That's what they are - they're animals. They're perpetrating hate, they're trying to import hate from

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