Australians are being warned against taking part in hateful and violent gatherings following the online promotion of a Sydney event dubbed "bashing day".
People have been urged in social media posts to gather on Sunday at a southern suburbs beach and incite violence against the city's Middle Eastern community.
An alleged organiser is facing court over the incident.
The posts were first circulated in the days after Islamic State-inspired gunmen opened fire on a Hanukkah event at Bondi Beach, killing 15 people.
But NSW police are aware of them and have reminded locals they will be ready to take action on criminals "motivated by hate".
"Everyone in NSW deserves to be safe and feel safe," acting assistant commissioner Brendan Gorman said.
"Now is not the time for any behaviour that will cause division in our community."
Police on Monday arrested a 20-year-old man near Gosford after an investigation into the allegedly violent call to action.
He was charged with using carriage service to menace, harass, offend and publicly threaten violence on grounds of race or religion.
Following his arrest, Premier Chris Minns reminded Australians "hate can't beat hate".
"We will not tolerate anyone trying to incite - via the internet or Facebook or social media posts - and attempt to bring our communities together in violence," he told reporters.
Laws rushed through state parliament in the aftermath of the terrorist attack allow Police Commissioner Mal Lanyon to restrict public assemblies across Sydney for two weeks from December 24.
They have also given police powers to demand anyone suspected of committing an offence to remove face coverings.
While gatherings are permitted, officers can direct people to move on if they are behaving in an intimidatory or harassing manner, or are likely to cause fear.
The laws have been widely panned by civil liberties and protest groups as an overreach that will not stop anti-Semitism.
A High Court challenge has been planned.
Sydney revellers will meanwhile be asked to observe a minute's silence on New Year's Eve in a gesture Lord Mayor Clover Moore hopes will encourage the rejection of violence, fear and anti-Semitism.
At 11pm, the Sydney Harbour Bridge will also glow white and its pylons will display the word 'Peace'.
"These moments will provide an opportunity for people to show respect, to reflect on the atrocity and to say we will not let this hateful act of terror divide us," Cr Moore said.
NYE events featuring beefed up security will also go ahead at Coogee, Parramatta and on the city's northern beaches.
However a planned gathering at Bondi has been cancelled, with organisers instead focusing on "compassion and care for Sydney's Jewish community and all those impacted".
Ten survivors of the mass shooting remain in hospital.
One is critical, three others are critical but stable, and the remainder are stable, health authorities said on Saturday.
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