The Palestine Action Group faced a setback as they lost their legal challenge in the New South Wales Supreme Court concerning the expanded police powers granted for the visit of Israeli President Isaac Herzog. The government had declared this visit a 'major event,' which enabled law enforcement to implement additional measures for managing crowd control and ensuring public safety. This designation also imposed severe penalties, including fines that could reach up to $5,500 for those who disregard police directives, raising concerns about the implications for protesting rights.

During the court proceedings, the lawyers representing the Palestine Action Group questioned the appropriateness of applying the Major Events Act in this scenario, arguing that it traditionally pertains to commercial events rather than political protests. The response from the New South Wales state indicated that the aim of granting these powers was to safeguard the public, particularly amidst the heightened tensions that often accompany protests related to the Israeli-Palestinian conflict. The court's decision underscores the ongoing debate over the balance between maintaining order and respecting the rights to free speech and protest.

This case and its outcome have significant implications for the nature of political protests in Australia, particularly for groups expressing dissent against government actions or foreign leaders. The ruling might deter future challenges against similar measures instituted for controversial events, highlighting potential tensions between law enforcement policies and civil liberties as protest dynamics evolve in increasingly polarized environments.