MELBOURNE:Prime Minister Kevin Rudd's artist-activist nephew was on Tuesday fined for offensive behaviour as he dressed up in Ku Klux Klan outfit to protest racism at a demonstration outside the venue of Australian Open.

Van Rudd, who is the son of Prime Minster's brother Malcom Rudd and another man staged a protest outside the Rod Laver Arena against the recent spate of violence against Indians in Melbourne.

The protest from Van Rudd came after eight men were arrested for bashing of two Indian students overnight.

Carrying banners "Let the refugees in" and "no racist attacks on Indians", Rudd and the other man refused to move from the lawn outside the arena, saying they were protesting because the Australian Government refused to acknowledge that attacks on Indians were racist and that locking up asylum seekers was wrong.

Their protest came on what the group branded "Australia Day/Invasion Day".

After the pair refused repeated police requests to leave, a police car eventually arrived and fine them.

"I'm not surprised, but at least we got the point across," Rudd said as he was being bundled into the back of the police car ten minutes after the protest began.

"The Australian Government has to act to save innocent Indians and Tamils."