Protesters have torn down a security fence outside an Adelaide lecture theatre where Prime Minister Tony Abbott is delivering a speech.
Hundreds of protesters gathered at Adelaide University where Mr Abbott is delivering the Sir John Downer lecture.
Dozens of police officers, including 10 mounted police, have contained protesters after a security fence was broken down.
Protesters chanted slogans including "Tory scum" and "Get those animals off those horses".
National Union of Students SA education officer Gabriel Evangelista said the protest had attracted a range of activist groups opposed to the federal budget.
"There's barely a section of the working class that this budget doesn't hurt," he told AAP.
Two students are reported to have suffered minor injuries when mounted police advanced on the crowd.
It is understood there were no arrests made.
Mr Abbott's speech focused on Australia's broad foreign policy objectives, including the need to co-operate with global partners to combat the renewed threat of terrorism.
He said the Islamic State of Iraq and the Levant had attracted fighters from around the world - including Australia - posing a real risk to national security.
"There are now more home-grown terrorists or potential terrorists than ever before," he said.
Mr Abbott said the government was determined to beef up security measures to offset this threat, but the proposals on the table would not single out any one community.
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