They've been charged with belonging to a criminal organisation following an investigation into the party by the country's Supreme Court.
Greg Dyett reports.
Golden Dawn was the third most popular political party in Greece, with 18 members in the parliament.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
But support for the party has plummeted following the arrest of a self-proclaimed neo-Nazi over the fatal stabbing of anti-facist rapper Pavlos Fyssas.
The suspect has told police he was a Golden Dawn member, although the party denies any involvement in the killing, which took place two weeks ago.
Golden Dawn MP Artemis Mattheopoulos told a BBC reporter the party is not responsible.
"We are a political movement that has nothing to do with crime organisation or something like that."
(Interviewer)"So one of your members did not stab to death Pavlos Fyssas two weeks ago?"
"We have said that, no involvement in this, we are a political movement and we do not accept acts like that."
Over the weekend, Greece's anti-terrorist unit found weapons, ammunition and cash in the home of the party leader, Nikolas Michaloliakos.
He and other Golden Dawn MPs have since been arrested.
Nikos Dendias is the Minister for Public Order.
"Golden Dawn tried to test the endurance of democracy, today they received their answer. My criminal report to the Supreme Court prosecutor has created the possibility for the first time to bring together many pending cases against Golden Dawn so that this neo Nazi phenomenon can be dealt with as a criminal organisation."
The arrests came after the party threatened to withdraw its 18 MPs from the parliament, an action that would trigger multiple by-elections and threaten the stability of the coalition government, which only has a slim majority.
Golden Dawn was founded in 1980 and remained on the periphery of Greek politics until only recently when it exploited the anger over the austerity measures introduced to get Greece out of debt.
The English editor of Melbourne's Greek language newspaper Neos Kosmos, Eugenia Pavlopoulou, says Golden Dawn recently wanted to establish a presence in Melbourne.
But she says the move was met with fierce resistance from the Greek community with a petition sent to the federal government asking that it not admit Golden Dawn MPs into the country.
She says the former Prime Minister Julia Gillard responded to the community concern back in March.
"The then Prime Minister yes was attending the Greek festival, Antipodes festival in March and was asked by Neos Kosmos if she would allow this party to set up a branch here and said of course we adhere to the democratic values and of course everyone can have their views in their country but we won't import this kind of branches, party branches in Australia."
Under the Greek constitution, political parties cannot be banned so the authorities are trying to have Golden Dawn declared a criminal group.
Ms Pavlopoulou says the only thing that seems guaranteed is yet more political instability.
"We'll see where, how the support to the Golden Dawn and how the voters will change their view now that the president of their organisation is in jail and it's been charged, yes, it's going to create instability in Greece that's for sure and one of the things and we hope this instability will not be something that will last long and as for the government, another headache."
Feature by Greg Dyett
