A gang of violent neo-Nazi skinheads from Footscray, Victoria, Australia attack two Vietnamese-Australian teenagers in a subway tunnel at Footscray Station (filmed at Richmond Station). The gang is led by Hando (Russell Crowe) and his friend and second in command, Davey (Daniel Pollock). They meet drug addict Gabrielle (Jacqueline McKenzie) the day after her sexually abusive, highly affluent father Martin (Alex Scott), has her junkie boyfriend beaten up. Gabrielle starts a romantic association with Hando.Some of gang's skinhead friends visit from Canberra, one of whom has joined the Royal Australian Navy and is home on leave. After a long night of drinking, fighting, and sex, two members of the gang go to their local pub. Unbeknown to them the owner has sold it to a Vietnamese Australian businessman. Upon seeing the new owner and his sons, they inform Hando. Hando and his gang arrive and savagely beat the new owner's sons. A third Vietnamese youth phones for help, and several armed Vietnamese men descend on the skinheads. The Vietnamese outnumber the skinheads and a few are killed. The Vietnamese force them to retreat to their rented warehouse, where the Vietnamese ransack the building before setting it on fire.The skinheads find a new base at a nearby warehouse after evicting a pair of squatters, and plan their revenge against the Vietnamese. Learning that gang members plan to buy a gun, two female friends of the gang depart. Gabrielle suggests the gang burgle her father's mansion. They ransack the house, beating Martin up, smashing one of his cars and raiding his wine collection. Gabrielle tells Martin that the burglary is revenge for his years of abuse. Later she reveals to Davey her plan to take Hando away from his violent life. Martin eventually frees himself and uses a handgun to scare away the gang before they can take any of his property. Davey begins to have doubts about his violent life style.Gabrielle criticises Hando's handling of the robbery and he abruptly dumps her. Davey announces his intention to leave at the same time, giving Gabrielle the address of his German grandmother, where he will be staying. Gabrielle informs the police of the gang's location and then spends the night with Davey. Davey reveals his doubts about his violent lifestyle, having removed the racist patches from his flight jacket out of concern for his grandmother.The police raid the warehouse while Hando is out. The youngest skinhead is shot dead after pointing a non-working gun at police. Police arrest the rest of the gang. Hando watches from a distance and flees. Arriving at Davey's flat, Hando finds his friend in bed with Gabrielle. Hando accuses her of informing the police, but Davey says they were together the whole time since leaving the squat. Hando convinces Davey to stick by him, and the trio go on the run. They rob a service station, and Hando strangles the Asian attendant to death. Driving all night, they stop at a beach. On the beach, Gabrielle overhears a conversation wherein Hando tries to convince Davey to leave her behind. Gabrielle then sets their car on fire. She admits to phoning the police. Hando attacks her, attempting to drown her in the surf. Davey stabs Hando in the neck with his Hitler Youth knife, killing him. Davey cradles a horrified Gabrielle on the beach watched by a busload of Japanese tourists, while Hando's bloody corpse gazes at the ocean.