The radio ad featured a group of British men singing 'Land of Hope and Glory' using various synonyms of the word "whinge", including "whine", "moan", "slag" and "complain". It ended with the tagline "Introducing Tooheys New Super Cold, served so cold it's a Pom's worst nightmare".
Timed to coincide with the Ashes, the ad played on the "whinging pom" stereotype and the Australian belief that an Englishman can only consume his beer at room temperature.
British People Against Racial Discrimination, led by ex-patriate David Thomason, campaigned for its removal because of the negative connotations of the word "Pom".
Thomason said: "The Oxford Dictionary classes 'Pom' as being derogatory."
The Advertising Standards Bureau, the Australian version of the ASA, upheld the complaints and ruled that the beer ad was offensive and demeaning, in breach of the ASB's code of ethics dealing with vilification based on nationality.
Mark Jeanes, chief executive of the ASB, said: "We felt the negative words used in the radio ad detracted from the otherwise playful nature of 'Pom', leaving it with a derogatory and almost hostile meaning."
Thomason also called for the accompanying poster ad to be banned, but it was allowed to remain in the public domain.
A spokesman for Tooheys said: "We believe in the context of the shared history and rivalry between the two nations that it was tongue in cheek.
"It's not hostile and we feel it's in line with prevailing community standards."