RNA - Scott Papworth, 27, is accused of yelling abuse about Islam and punching a side-view mirror as a woman, 26, and her mother sat in a car in the city about 7:00pm (AEDT) 7th of October.
Police say Papworth followed the pair as they drove away and continued the abuse after they pulled over to fix the car's mirror.
Papworth is also accused of punching a man who tried to help the women, and stealing mobile phones from two people who intervened, before being apprehended by members of the public.
The man has been reportedly charged with intimidation, larceny, maliciously destroying property and common assault.
However, in Newcastle Local Court this afternoon, Papworth pleaded not guilty to two counts of intimidation, two counts of larceny, one count of assault and one count of malicious damage.
Police prosecutor Karl Moir told the court it was "a racially provoked attack on innocent people" and the allegations were very serious given the "present climate" relating to Islam in Australia.
Papworth will appear in court again next month.
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