Hizb Ut-Tarir says Muslims are not just being forced to obey the law - but also adopt Australian values.
The group, which supports an Islamic caliphate and sharia law, is banned in some countries but not in Australia.
At a conference in Sydney's south west today titled Innocent Until Proven Muslim, there were numerous speakers and testimonies from people who said they have been affected by government intervention.
Hizb Ut-Tarir spokesman Uthman Badar told the audience that Muslim children should not have to sing the Australian national anthem and accused the Australian Government of an "agenda of forced assimilation ... justified by exaggerated fears of a security threat".
Mr Badar said the anthem reflected a disputed view of history.
"Stop forcing your values on Muslims at home. Stop trying to change the identity of Muslims through projects of assimilation and integration,” he said.
Other peakers accused authorities of unfairly targeting Muslims at school, airports and in their homes
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One said increasing the powers of police and spy agencies was turning Australia into a police state.
"Security agencies were beefed up so drastically that they are in effect a paramilitary force in this country," he said.
Hizb Ut-Tarir first held a conference like this one two years ago. Since then organisers say hysteria has reached new levels and the government has deployed unprecedented new tactics.
Another speaker said Muslims were being treated like criminals because of their beliefs.
"There are criminals amongst every nation, religion, creed whatever. There are people out there who will commit acts which are violent, and those people don't represent Muslims."
Another told the audience: "I feel that I'm not first class citizen and the media is helping the government with what they are doing."
The conference, which follows The National Day of Unity on Saturday, was held at The Bellevue in Bankstown.
- With AAP
