We're missing a bit of information here. I got your report, went to the thread to get the context.

Firstly, I saw that you had literally screen-capped the comment in question and included it in a new reply. So, removing the comment would have achieved nothing - it would have still been there.
Secondly, the comment was Zionistic in nature, which while especially unpopular in nature is not against instance rules.
Thirdly, I wasn't aware that the comment in question was similar to something Nazis said. I don't even know if the user who made the comment knew that. So, leaving it there and letting downvotes do their thing allowed for education as well.
Lastly, the comment was in the Australian Politics community - which is intentionally the lightest-touch moderated community because there's a difference between political discussion where parties disagree quite vehemently and an outright echo-chamber. If you delete all the users from your politics community that you don't agree with, what is the point of the community?

To answer your question: No, we don't allow Nazis here. It is literally one of the questions we ask on the application screen. "Nazi talking points" is not on its own a good metric of what is acceptable today. We basically have a whole community in support of Reichsnaturschutzgesetz. I don't especially take issue with Tierschutz, either. One of the reasons the Third Reich gained actual popular support was some of their early policies were in fact in the best interest of the German people. There is still a Kindergeld today, though giving full credit to the Nazis to that one wouldn't really be genuine. It is fair to say they supported this policy. So I guess our stance on "literal Nazi talking points" will boil down to other factors and get taken on a case-by-case basis.

Finally: If there's a user you genuinely don't wish to see around here any longer, you can hit the little down arrow on any of their comments and block them.

Is there a particular reason why you're dancing around saying what they actually wrote, or naming the "foreign genocidal regime"?

I don't see this as, as much of an acceptance of Nazis problem than a lack of moderator problem. There is one active moderator for that community, that moderator also happens to be a rather busy bloody bee, seeing as they are the AZ admin/owner, and they've stated their personal life business before.

This is a problem I'm actively concerned about with communities I moderate. I advocate for more moderators per community, and to ensure those moderators are still somewhat active.

If @lodion@aussie.zone wants help with moderation I can jump on board with the community in question.

I'd also advocate lodion inviting by P.M. another one or two people to help out with moderation as well. Because many hands = light work. And a bank of moderators could help smooth things when issues such as inactivity of mod accounts arise.

FWIW I'm not okay with Nazis and their Nazi bullshit. I can be a dickhead online for sure, but I'm pro-peace and anti-genocide.

Good to know that aussie.zone is not willing to remove Nazi users and prefers their company.

I don't see the point in beating around the bush.

A glance at the homepage tells us that Nazism would break the first 3 instance rules, there's no reason to expect it to be allowed. The difficulty comes when bigoted rhetoric is subtle enough to go unrecognised, or has been normalised. So it would help to know which comment is repeating which talking points.

Censorship is what nazis do.

And even tho seeing nazis and nazism distresses me greatly I would rather talk with them and try use good sense and facts

because exclusion is only going to make them more set in their beliefs

OK. So you took my comment totally out context.

what you wrote never even crossed my mind

what did cross my mind was the saying " River to the sea" , which is about living space and I wrote living space ironically

River to the sea is a dog whistle

I was in the protest on Oct 8th 23 when the protest leader called River to the Sea and the crowd answered, Kill them.

Oct 8th there was no genocide

You know who else I have heard use the concept living space? A Rwandan. I met a Rwandan when I was a member/speaker at the Marxist Institute in nyc. I asked why he did it, he said it was traditionally their land and they needed the land to live. I was shocked and asked, Even children.

I left and was very shaken. Left the Marxists shortly thereafter.

I'm sorry you are so frightened of me, that you are so unable to question information presented to you, that you are behaving like you are in a cult, that facts and reason to do not make you question your own beliefs.

I won't post here again because you are just too fragile and there is no point.

It applies to each comunity and instance separately. Some instances(like Lemmy.ml) not may only allow some inappropriate behavior, but their admins may do similar things actively(not Nazi stuff, they spreading pro-russian propaganda and nationalism ideas). So, if writing Nazi comments is against policies of comunity and/or instance, this user most likely will be punished. Otherwise, you may be punished for interfering with Nazi doing its stuff in Nazi place.