Wagga City Council is reviewing its security measures at Robertson Oval, after a perpetrator scaled a 57 metre-high light tower and hung a Nazi flag from the top.
The bright-red swastika-emblazoned flag was hastily removed by contractors at 6.30am on Tuesday after The Daily Advertiser alerted council to its presence.
Mayor Greg Conkey said council would investigate how the perpetrators managed to scale the tower and hang the flag.
"It begs the question as to how the person got up there in the first place and if we need to provide extra resources to prevent this happening again," Councillor Conkey said.
"The last thing we want is climbing tower and falling off; it's a huge tower and a major safety issue."
Cr Conkey said he was unaware whether the perpetrators appeared in any CCTV footage, but that council would look into the issue.
Multicultural Council of Wagga CEO Belinda Crain said she was shocked by the news, saying it did not reflect the views of Wagga's diverse community.
"It's appalling," Mrs Crain said. "I don't think it's appropriate or relevant in today's society."
Wagga police Superintendent Bob Noble said he condemned the actions, but that there were no laws banning Nazi flags meaning that police may not be able to charge the culprits even if they are caught.
The Victorian government has been pushing for tougher anti-vilification laws after a Nazi flag was flown from a house in the rural town of Beulah.
The incident sparked outrage from Victorian Premier Daniel Andrews and Attorney-General Jill Hennessy, leading to a broader push for enforceable anti-hate laws.
The Daily Advertiser asked NSW Attorney-General Mark Speakman whether he would join his Victorian counterpart in pushing for tougher laws, but he did not say whether he'd be taking any further action.
However, Mr Speakman said the government had taken steps to toughen anti-vilification laws in the past, pointing to changes to the Crimes Act in 2018 which introduced a three-year jail sentence for those who incite racial violence.
"The NSW government introduced reforms in 2018 criminalising the public incitement of violence on a range of grounds including race and religion. I encourage anyone affected by this sort of conduct to contact the NSW Police," Mr Speakman said.
He went on to condemn the actions of whoever flew the Nazi flag in Wagga, saying it was an unacceptable display.
"These actions are a disgraceful display of racism and anti-Semitism, which are totally unacceptable anywhere in our community."