A senior Muslim leader has called out the growth of Islamophobia and far-right hate groups in Australia at a gathering of thousands of Muslims at Lakemba Mosque, in Sydney's south-west, to mark the end of Ramadan.

Lakemba Mosque was filled to capacity by 6:00am for Eid celebrations to mark the end of Ramadan. ( ABC News: Jackson Vernon )

Samier Dandan, president of the Lebanese Muslim Association, told the crowds that the rise of right-wing political parties in Australia was a major concern, particularly in the light of the weekend's election results.

Pauline Hanson's election to the Senate has led Race Discrimination Commissioner Tim Soutphommasane to warn that her anti-Muslim and anti-Asian comments could unleash hatred, division and violence.

The One Nation leader has repeatedly called for a royal commission into Islam and re-iterated a claim, that Asians were "swamping" the country.

Crowds started arriving in the early hours of the morning and the mosque reached capacity by 6:00am, with people having to spill out onto surrounding streets.

Prayers are being broadcast on loud speakers.

'Continued rise of Islamophobic discourse' in Australia

Mr Dandan said it was frustrating to see people with these far-right views become elected.

Samier Dandan warns of the rise of far-right politics at a function to mark the end of Ramadan. ( ABC News )

"The continued rise of Islamophobic discourse in the public in addition to a number of divisive and toxic policy decisions have only exacerbated negative sentiments towards the Australian Muslim community," he said.

"They're increasing influence is a reflection of critical mass of support public Islamophobia is currently enjoying.

"Their divisiveness will not break or divide us," he said.

"Their questioning will not deter us.

"Their bigotry will not install hatred in us. We Australians are better than that."

He said Muslims in Australia were in a vulnerable position due to the rise of far-right hate politics.

"It cannot be emphasised enough just how disappointing it is to see individuals who preach hate and bigotry gaining power in our elections," he said.

"It is deplorable that such basic understanding of Islam and such flagrant dehumanising of Muslims and others is allowed to frame public discourse.

"Let us not mince words, such racism and xenophobia has no place in multicultural society.

"It is imperative that people peddling such messages are called out for what they are - hate preachers.

"They are provided platforms by the media to spread their vitriol.

"It's just as deplorable as those that entertain such sentiments."

Thousands of people have gathered at Lakemba Mosque to celebrate Eid. ( ABC News: Jackson Vernon )

We reject the likes of Hanson: Foley

NSW Labor leader Luke Foley said someone ought to tell the likes of Pauline Hanson that Ramadan was more than just fasting, it was about charity too.

NSW Labor leader Luke Foley speaking at Lakemba Mosque. ( ABC News )

"We've seen charitable work over the last four weeks, amongst Muslims that assist people in need in our community and indeed around the world," Mr Foley said.

"Someone should educate these preachers of hate about that.

"This morning I have seen many friends who have come to this country from Africa, from Asia, from Europe, as well as the Middle East, this is our cultural diversity, people of many cultures, many faiths coming together, that's why this is the most harmonious and prosperous counties on Earth, that's the greatness of Australia.

"So the likes of Pauline Hanson, who seek to spread ignorance and hateful bigotry, we reject you.

"We say what is great about Australia is that people of many faiths come together in a spirit of understanding, harmony and friendship."

No place for racism in Australia: Baird



New South Wales Premier Mike Baird said racism had no place in Australia and said the best way to deal with bigotry was to promote peace.

NSW Premier Mike Baird says people must stand up to racial vilification. ( ABC News: Jackson Vernon )

"We must stand up against any form of racial vilification," Mr Baird told the crowd at Lakemba Mosque.

"Where we see intolerance we must respond with tolerance. We must call it as it is.

"But at the same time we must remember that the strongest way we can combat that is by coming together."

Mr Baird told the crowd the Muslim community was an important part of the NSW society.

"We must do more to promote peace. We must do more to come together," he said.

More than 1.6 billion Muslims across the world are celebrating the end of 30-day fasting period with religious holiday Eid al-Fitr beginning today.

Muslim families across Australia will now spend several days celebrating.

NSW Premier Mike Baird and Federal Government representatives addressed the service this morning.

Eid celebrations will take place across Sydney after the service, focused on food, friends and family.