This ethnographic study documents the lived experience of People of Colour (PoC) making alternative and punk music in Melbourne, Australia. Exploring local discourse on cultural diversity, inclusivity and racial difference, I offer previously undocumented Australian perspectives on race and popular music. The study traces issues of whiteness, anti-racism and punk in Australia down to three key components: subculture, genre and capital. Through formal, semi-structured interviews, the study asks how notions of cultural diversity impact alternative music scenes. I argue that PoC in these scenes experience race-based exclusion, both a result of the longstanding erasure of PoC from written histories of Western punk, combined with Australia’s specific position as a white multicultural, settler-colonial nation. In challenging the notion of punk as a white musical tradition, and recognising the specific conditions that foster racism in Australian music scenes, my informants and I discuss how anti-racist values may be meaningfully embodied in local music contexts.