NEO-Nazi skinheads will stage a white power festival on the Gold Coast and city leaders are powerless to stop them.

The annual Hammered Music Festival will be held at a secret location, thought to be in Carrara, on May 4.

Organisers, the Southern Cross Hammerskins, are the Australian branch of a US-based white supremacist group which held a similar event in Brisbane last year.

The event has been discussed online on neo-Nazi website Stormfront.org and was described by one forum member as "a massive event on the white calender (sic) with great bands, great atmosphere and a great weekend ... in one of Australia's top holiday destinations".

Last year, then Burnett MP Rob Messenger created a parliamentary e-petition calling on the Bligh Government to ban and punish neo-Nazi groups. Despite receiving 1940 signatures, the petition was rejected by both the former Labor administration and the Newman Government.

Attorney-General Jarrod Bleijie said at the time the Government did not condone "neo-Nazi or extremist beliefs".

"The Queensland Government will not ban this festival, but any attendees who incite or commit violence or racism will be dealt with by the police," he said.

The event, as well as similar festivals, have been held several times on the Gold Coast since 2010. The locations are always a closely guarded secret.

Mermaid Beach MP Ray Stevens said the festival and its interstate attendees were not welcome in the city.

"These people are an absolute minority of lunatics and I wish they would take their conference elsewhere," he said.

"Unfortunately in society there are always recalcitrant elements representing views which have nothing to do with mainstream society and the Gold Coast does not appreciate them coming to our doorstep."

However, Mr Stevens said white power groups should not be pursued under the State Government's Criminal Organisation Act currently being tested on the Gold Coast Finks.

If successful, the Act could lead to the outlaw motorcycle club, and any other groups targeted under the Act, being declared a criminal organisation.

Among the bands performing at the neo-Nazi festival are self-proclaimed "national socialist" band Open Season, The Commieknockers, and Ravenous.

The festival is being promoted by Blood and Honour, a Britain-based neo-Nazi group which has been banned in several countries including Germany, Russia and Spain.

Mayor Tom Tate refused to comment while police said the event was a council and State Government issue.

"There are a number of laws, both state and local, that bind people planning public gatherings to ensure public safety and amenity," a police spokesman said.

"These laws are governed predominantly by local councils and as long as the group abides by the law, it is not a police issue."

Organisers did not respond to requests for comment.