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Victorian Liberal leader John Pesutto warns MP Moira Deeming of further repercussions after she walked back condemnation of rally

Victorian Liberal leader John Pesutto said Moira Deeming had supplied new material which allowed her to avoid expulsion.

Victorian Liberal Leader John Pesutto says he will not rule out further repercussions for Victorian MP Moira Deeming after she walked back her condemnation of the organisers of a controversial rally on social media.

Earlier on Monday, Ms Deeming was handed a nine-month suspension over her involvement in the "Let Women Speak" rally, which began outside Victoria's Parliament on March 18 and was then attended by a group of masked men who performed the Nazi salute multiple times.

Victorian Liberal Leader John Pesutto had sought to have her expelled from the party room following the event earlier this month but changed his mind after Ms Deeming provided "concessions" and "condemnation".

Speaking after the party room meeting, Mr Pesutto said Ms Deeming had provided new information early on Monday, including "condemnation of the types of conduct" in social media activity by key speakers at the rally. 

"The new material she supplied this morning opened the doorway to a sensible proposal that I put to the party room that saw her accept the nine months [suspension], losing the party whip position as well," he said.

"Given Moira had provided what I had been seeking and recognised why it was important to do that," he said.

"The conduct that I wanted condemned has been condemned."

Moira Deeming (left) helped organise a rally involving anti-trans rights activist Kellie-Jay Keen-Minshull (right). (YouTube)

Ms Deeming said she accepted her suspension and will continue to support diverse communities in Victoria.

"I unreservedly condemn the poor-taste Nazi jokes and Nazi analogies listed in the annex of evidence against me," she said in a statement.

"I believe I am innocent of all imputations and accusations of any connection whatsoever with Nazism in any shape or form and any bigotry whatsoever toward the LGBTQI+ community.

"I have repeatedly and consistently condemned these heinous views, and I reiterate my condemnation of these views in the strongest possible terms."

'I never condemned you'

But hours after Mr Pesutto's comments, Ms Deeming rejected the opposition leader's claims she had condemned the rally's organisers as part of a deal to avoid expulsion from the parliamentary Liberal party.

"Don't worry, I never condemned you, or KD, or KJ," Ms Deeming tweeted in response to anti-trans activist Angie Jones and in reference to Kellie-Jay Keen-Minshull and former Liberal candidate for Warringah, Katherine Deves, who had also attended the rally.

Speaking on the ABC's 7.30 program, Mr Pesutto said he was not ruling out further punishment.

"If [the party room] sees evidence that there's a difference between what we were assured in written and oral presentations to the party room and what is being posted on social media then yeah, there will be consequences with that," he said.

"The party will be looking very closely, all of us, who believed what was put to us.

"If, as I've seen this evening, there are comments on social media that are inconsistent with that … that is a matter Moira would have to take very seriously because there will be repercussions.

"I am determined to make diversity and inclusion a top priority in the Liberal Party and anyone who cannot live up to that will not be given a platform."

The Nazi salutes sparked widespread outrage and prompted Attorney-General Jaclyn Symes to announce plans to introduce legislation to ban the gesture.

The rally also attracted a larger counter-protest in support of trans rights.

In the wake of the rally, Mr Pesutto said Ms Deeming's position in the party room had become "untenable" and moved to expel her, citing her promotion of the protest "at which there were speakers with known links to neo-Nazis".

Ms Deeming initially defended her participation in the rally, organised around anti-trans rights activist Kellie-Jay Keen-Minshull, which she and other attendees said had been gate-crashed by the neo-Nazis.

The incident placed Mr Pesutto's new role as parliamentary party leader under intense scrutiny.

Earlier, Mr Pesutto denied the suspension amounted to a backflip after he had last week pledged there would be no compromise on the issue.

Marginalised Victorians 'let down yet again': MP

Victorian Labor MP Harriet Shing described the outcome as a "non-result" that will act as a further blow to marginalised Victorians.

"John Pesutto either lacks the courage of his convictions or he lacks the support of his party room," she said.

"What we've seen is that according to the Liberal Party, one form of hate is not acceptable, but another seems to pass muster.

"Today's non-result will be a further blow to a marginalised and really vulnerable group of Victorians who were promised clarity, who were promised equality, who were promised recognition. They've been let down yet again.

"John Pesutto appears to have taken a decision that was the path of least resistance for his own self-interest."

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