The two locals allegedly abused a group of Indians and vandalised their car in a parking lot outside Meadowglen International Athletics Stadium in Epping.
The conflict started when a skateboarder damaged the rear window of a car belonging to an Indian and used abusive language against some Indians who were coming of the stadium where a Kabaddi match had ended.
A group of people who knew those whose car was damaged came to their assistance and assaulted two locals with sticks, the police said in a statement.
The two men sustained minor injuries and were taken to Northern Hospital.
The police have not yet made any arrests in the case.
This is the second such retaliatory attack launched by Indians down under who have been suffering from racial assaults. On Jun 9 20-year-old was stabbed in the Western suburb in Melbourne after he abused a group of Indian students.