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A Czech-born woman in England has been fined and found guilty of racially abusing her New Zealand-born neighbour a “stupid fat Australian bitch”.

Kiwi Chelsea O'Reilly has also been awarded compensation following Petra Mills's drunken rant against her on their street in Macclesfield, northwest England, the Daily Mail reports.

Miss O’Reilly said she was offended and insulted by the tirade.

Miss O'Reilly was giving a statement to police after a domestic incident in September between Mills and her husband when Mills stormed over to her house and began screaming at her.

At a trial in Macclesfield Magistrates Court, Miss O'Reilly said: “She called me a stupid fat Australian bitch. Because of my accent there can be some confusion over my nationality. She knew I was from New Zealand.

“She was trying to be offensive. I was really insulted.”

Mills told the court she shouted at Miss O'Reilly but it had nothing to do with racism.

“I did not use the word Australian. I used to live with an Australian person. She was very nice.”

Mills, 31, was fined $170 for racially aggravated public disorder and STG200 for kicking a police officer during her arrest. She was also ordered to pay both her victims STG50 compensation and STG500 court costs.