Nazi symbols to be banned with Aussies facing up to a year in jail - but one despicable act will still not be outlawed.

Australians who display Nazi insignia will face up to a year in jail as a new ban on the fascist symbols is brought in - but the Hitler salute will not be outlawed.

The federal government will introduce new legislation to parliament next week banning the Hakenkreuz or swastika symbol, along with the insignia of the Schutzstaffel (SS) - the paramilitary wing of the Nazi party.

The Australia-wide ban will outlaw the display of these symbols on flags, armbands, clothing, and will extend to posting the insignia online.

The federal government cannot prohibit Nazi salutes, as that falls under the jurisdiction of states and territories.