A Lake Macquarie man has been ordered to pay $10,000 for yelling "I'm going to kill you faggot" while punching a man in a gay nightclub for allegedly making a move on a woman.

The NSW Civil and Administrative Tribunal found Paul Taufaao committed unlawful homosexual vilification during the assault at 3.30am at the ARQ nightclub on September 15, 2014, in addition to a Sydney court finding him guilty of assault causing actual bodily harm.

Taufaao told police he punched David Massa in the mouth after speaking with him for more than 20 minutes because he thought Mr Masa had touched his cousin's wife while on the dance floor.

Mr Massa said he fell to the ground unconscious for a short period and when he woke "I could taste blood in my mouth, I could feel the blood dripping down the front of me".

His friend Simon Margan complained to the Anti-Discrimination Board after Taufaao yelled "F… off faggot" and "I'm going to kill you faggot" while Mr Margan tried to prevent Taufaao from punching Mr Massa again after the first punch.

The matter was referred to the NSW Civil and Administrative Tribunal as a complaint alleging homosexual vilification under the Anti-Discrimination Act.

Taufaao was fined $1100 and ordered to remain under the supervision of Probation and Parole for two years after he was convicted of assaulting Mr Massa, but the tribunal ordered Taufaao to pay an additional $10,000 to Mr Margan, a homosexual man, after accepting "I'm going to kill you faggot" was a homosexual vilification. Read more via Sydney Morning Herald