The Racial and Religious Tolerance Act 2001 was implemented by the Steve Bracks' Labor government in the state of Victoria, Australia. It was enacted on 1 January 2002, and generated significant public debate.
Opponents of the Act consider that it is too restrictive of free speech, while supporters consider that laws against vilification are similar to laws against defamation, and are justifiable in order to prevent harm to those affected.
The first major ruling on the laws (the only earlier reported decision was summarily dismissed) went to the Islamic Council of Victoria against Catch the Fire Ministries on 17 December 2004.
On 9 March 2002, Daniel Scot spoke at a seminar concerning Islam, sponsored by Catch the Fire Ministries, an organization led by Danny Nalliah. The seminar was attended by three Australian Muslims, who along with the Islamic Council of Victoria, launched action under the Act, claiming that the intent of the speech had been to vilify Muslims, rather than to discuss Islam itself. They also complained about written materials which had been distributed by Danny Nalliah. After being considered by the Equal Opportunity Commission, the case was heard by the Victorian Civil and Administrative Tribunal, and became the first real test case under the Act.
In the landmark ruling on 17 December 2004, the Tribunal ruled that Nalliah, Scot and Catch the Fire Ministries had breached the new law. Writing in The Age newspaper, David Palmer claimed that the finding by Vice President Michael Higgins meant that "truth is no longer an acceptable defence". The Vice President heard further submissions regarding 'remedies' early in 2005. On 22 June 2005, Vice President Higgins delivered his final verdict on the religious vilification issue regarding "remedies". He found that financial compensation would be inappropriate, but ordered Nalliah and Scot to take out newspaper advertisements to the value of $68,690 which summarised the findings in the case. Nalliah once again slammed the ruling, comparing the legislation to "sharia law by stealth". He vowed that he would rather go to jail than comply with the ruling. He publicly declared his intention to continue fighting the case, potentially as far as the High Court of Australia. The Age newspaper quoted him as stating "We may have lost the battle, but the war is not over. The law has to be removed, there is no question."