A violent gang of neo-Nazi skinheads in Footscray, Victoria, Australia, engages in a brutal assault on two Vietnamese-Australian teenagers in a subway tunnel at Footscray Station (filmed at Richmond Station). Leading the gang is Hando, portrayed by Russell Crowe, alongside his loyal friend and second-in-command Davey played by Daniel Pollock. The following day, they cross paths with Gabrielle, a drug addict depicted by Jacqueline McKenzie, who has just experienced a traumatic incident involving her affluent father Martin, enacted by Alex Scott. Gabrielle quickly develops a romantic connection with Hando.
As the gang's skinhead acquaintances visit from Canberra, one of them, who is home on leave from the Royal Australian Navy, joins in their revelries filled with drinking, fighting, and casual encounters. One fateful night, when two members head to their local pub, they are caught off guard to discover the owner has sold the establishment to a Vietnamese Australian businessman. Unappreciative of the new ownership, they quickly report it to Hando. What follows is a savage attack, where Hando and his crew beat the new owner's sons mercilessly. In response, a third Vietnamese youth calls for help, leading several armed Vietnamese men to confront the skinheads. Outnumbered and overwhelmed, the skinheads are forced to retreat to their rented warehouse, only to have it ransacked and set ablaze by their assailants.
Desperate for a new hideout, the skinheads claim a nearby warehouse after evicting squatters and soon plot their revenge against the Vietnamese community. Gabrielle proposes a burglary of her father's mansion as a way to retaliate, and they proceed to ransack the place, physically assaulting Martin and vandalizing his property as a form of revenge for his past abuses. However, when Martin manages to free himself, he frightens the gang away with a handgun. Meanwhile, Davey begins to experience doubts regarding the violent lifestyle he has adopted.
As tensions rise within the gang, Gabrielle criticizes Hando's approach during the burglary, prompting him to abruptly end their relationship. At the same time, Davey decides to leave, offering Gabrielle the address of his German grandmother’s home as a refuge. Later that night, she informs the police about the gang's whereabouts and spends the night with Davey, who confesses his concerns about his upbringing, having removed racist patches from his flight jacket.
During a police raid on the warehouse while Hando is absent, the youngest skinhead is tragically shot dead after brandishing a non-functional firearm. Arrests follow, but Hando escapes unharmed. Upon discovering Davey and Gabrielle together, Hando wrongfully accuses her of betraying the gang. Nevertheless, Davey reassures him that they hadn’t left each other's side since departing from the squat. Hando persuades Davey to stay loyal, and together, they embark on a crime spree, robbing a service station where Hando kills an Asian attendant during the heist.
After a night of driving, they stop on a beach, where Gabrielle overhears Hando attempting to convince Davey to abandon her. Heartbroken and betrayed, Gabrielle sets their car on fire, revealing that she had indeed contacted the police. Enraged, Hando tries to drown her in the ocean, only for Davey to intervene violently, fatally stabbing Hando with his Hitler Youth knife. In a haunting scene, Davey holds the terrified Gabrielle on the beach, while a busload of unsuspecting Japanese tourists looks on, and Hando's lifeless body lies in the surf, staring at the vast ocean as darkness descends.
