Two men are the first people in Victoria to face charges over alleged racially motivated crime.

Victoria's racial and religious tolerance laws were enacted in January 2002.

The men have been charged with inciting racial hatred and assault offences over an attack on a young Indian man in February.

Chief Police Commissioner Simon Overland says police needed the approval of the Director of Public Prosecutions before proceeding.

"You've ultimately got to prove the charge... to the criminal standard, which is a pretty high standard," he said.

"We obviously feel that we have enough evidence. The director agreed with that and these matters will now proceed through court.

"These people are innocent until proven guilty but they will face those charges and have to defend them."

It is alleged the pair and a third man, who is yet to be charged, racially and physically abused an Indian student on a bus heading for Portsea in February.

Commissioner Overland says if a victim's race is proven to be a factor in a crime, harsher penalties would apply.

"There have been changes made to the Sentencing Act that make that an aggravating factor that magistrates and judges need to take into account in sentencing," he said.

"If it's proven I would expect that it would add to the sentence that's imposed."

The president of the Federation of Indian Associations of Victoria, Vasan Srinivasan, has welcomed the police charges.

"I really appreciate the way Victoria Police has taken on this issue," he said.