The finding in a case that has long fascinated Australia comes after three inquests, and almost 30 years since Scott Russell Johnson died in December 1988 aged 27, with police at that time ruling his death a suicide.
Only one other time in Australian history have three inquiries been held into a single case -- after the death of Azaria Chamberlain, a baby snatched by a dingo from a campground.
"Mr Johnson fell from the cliff top as a result of actual or threatened violence by unidentified persons who attacked him because they perceived him to be homosexual."
Citing evidence he had reviewed, Barnes said there were gangs of men in Sydney at the time who "habitually went to various locations... to find homosexual men with a view to assaulting them".
One "gay beat" spot was Blue Fish Point in Manly, near the cliff top where Johnson's clothes were found neatly folded.
"There is however, insufficient reliable evidence to identify the perpetrators."
Johnson's brother Steve, who had long pushed for further probes, said a homicide investigation should be pursued.
"It is a historic time in Australia for the LGBTQ (Lesbian, Gay, Bisexual, Trans and Queer) community, for everyone," he told the Sydney Morning Herald, with Australia set to change laws in favour of gay marriage after a national survey endorsed reforms.
"I think the police should be free to investigate this as they know how to do, focusing on homicide, which is something they haven't really done in the past."
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