There were no arrests and physical clashes were limited to a small scuffle, but both sides are claiming a "moral" victory.
A few dozen of the anti-Islamic United Patriots Front (UPF) assembled to march on the Victorian Premier’s office, angered by comments Daniel Andrews made.
They took offence over his comments saying United Patriots Front demonstrators covering their faces at previous rallies were acting a violent, riotous way.
On arrival, they were outnumbered three-fold by a counter-protest organised by No Room for Racism activists vowing to intervene every time the United Patriots Front take to the street.

Victoria Police warned before the rally that they would intervene in any acts of violence, intimidation, racially motivated attacks or assault. (Photo: Luke Waters) Source: SBS News
“They're not just concerned Mums and Dads, not your garden variety racists,” said Ezekiel Ox, the organiser of the counter protest.
“They're the hard-core fascist organisers who have no space on the streets of Melbourne or anywhere else in Australia.”
Victoria Police warned ahead of the rally that they would intervene in any acts of violence, racially-motivated attacks or assault.
The groups hurled insults at each other and for a few seconds breached the heavy police contingent, but there were no arrests or reports of injuries.
The United Patriots Front said the presence of a counter-rally proves they are not the ones inciting violence.
“We're trying to publicly object to an elected official and we can't even do that,” said United Patriots Front spokesman Blair Cottrell. “Wherever we go, for whatever reason we are followed stalked and terrorised by these people.”
Mr Cottrell also suggested the counter-protesters walked into a trap by attending today.
“This is what I wanted - this is exactly what I wanted,” Mr Cottrell said
“I'm overjoyed. I've asked my people here to give them a round of applause. If I did not want them here I wouldn't have told them we were coming.”
But the anti-racists also claimed victory by denying the United Patriots Front access to the Premier's Office precinct.
“They did not make it to Number 1 Treasury Place like they said they were going to try to,” Mr Ox said.
“It is a massive political defeat for the UPF today and it's their fifth in a row in Melbourne and they will never win in Melbourne.”
Further protests will be held in coming weeks, with a significant event planned for the tenth anniversary of the Cronulla Race Riots in Sydney next month.
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