White supremacists chanting “white power” and “Australia for the white man” have been pushed away from a refugee protest in Melbourne after turning up on Tuesday.

The masked group attempted to crash the final night of a 100-day refugee encampment outside the Department of Home Affairs in the inner-city Docklands.

The refugee rally, supported by union groups, has been fighting for 8500 refugees seeking permanent visas.

The refugees say they have lived in a state of “limbo” for more than 12 years as they await decisions from various governments.

About 6pm on Tuesday, a group of black-clad neo-Nazis appeared at the peaceful encampment, which has been a fixture on Bourke Street for months.

The balaclava-wearers stood opposite the protesters in a face-off and raised a huge banner that declared in bold lettering “F— off we’re full”.

One man screamed racist chants through a mega-phone.

“Are we ever going to see your race again?” he called, to which his supporters replied: “No way, get f—ed, f— off.”

He also yelled: “Australia for the white man.”

Police stood between the two groups and began pushing the infiltrators away from the encampment, to the cheers of the refugee supporters.

The neo-Nazis were forced away with pepper spray by a wall of officers, who shoved them backwards down the street before the group eventually dispersed.

The protesters chanted “Refugees are welcome here” as the crowd whooped and whistled.

Victoria Police said there were no arrests or injuries.

“It is understood a group of about 20 people attended the rally just before 6pm,” a statement said.

“Officers formed a line to separate the two groups before they were forced to deploy OC spray.

“Police will assess the circumstances surrounding the demonstration and review vision of the incident and people involved.”

The Asylum Seeker Resource Centre says about 8500 refugees have been “failed” by the federal government’s Fast Track system for assessing visa applications.

“Protestors are still waiting for answers from the Albanese government on what their future holds, and whether Labor will finally provide a resolution for the thousands of men, women and children who’ve endured over a decade of family separation, uncertainty and fear of deportation,” the centre said.

The Fast Track system was introduced by the Abbott government in 2014.

Refugee advocates say it has produced “unfair and legally incorrect decisions, caused extended delays, re-traumatised people and resulted in refugees being deported to countries where they face persecution and risk of serious harm”.

“Despite Labor committing to abolish the Fast Track process in October this year, due to its long history of incorrect decisions and poor processes, no commitment has been made to rectify the harm caused to the remaining 8500 people subjected to a clearly failed system.

“Many have lived in our communities for over 12 years, raised families and children and want to be able to rebuild their lives with certainty and permanency in Australia.”