The group of nine posed for a picture at Avoca Beach — in which they appear to be collectively carrying a pale mannequin — and then posted it on Instagram.
“Slaves for the win #beerolympics,” reads the caption on the image which was “liked” by more than 120 people shortly after it was uploaded late yesterday morning.
The uploader, Blake Jacob told news.com.au that it was “a bit of harmless fun”. However the photo was quickly criticised by Mr Jacob’s friends.
“This is seriously f**ked up,” wrote one of his followers.
“Soo (sic) not okay!!!” wrote another.
A witness told news.com.au the young men were part of a gathering of about 30 young men at Heazlett Park.
He said one of the men had a Confederate flag draped over their shoulder and another was dressed as Jesus.
However, Mr Jacob told news.com.au that he was the “least racist person ever” and deleted the picture within hours of posting it.
“All you lefties need to get lost it’s all abit (sic) of fun,” the former Kincumber High School pupil wrote in response to the criticism. “I’m the least racist person ever you can get f**ked.”
“Shut up wingers (sic),” added one of Mr Jacob’s friends on the thread. “It’s a joke.”
“Racism haha it’s a bit of history a bit of fun you can’t cry for ever,” wrote another.
One of those who saw the picture, who does not wish to be named, said the picture was “absurdly unacceptable”.
“This has got to be the worst case of blackface I have ever seen occur,” he said.
“From photo to caption, it’s absurdly unacceptable. If this is being passed as acceptable by people of this age group then more needs to be said on the issue.”
A spokesman for NSW Police said the force has not received any complaints about the picture.
Heazlett Park was left littered with bottle tops and a container of brown paint on Saturday morning, a witness said.