Staff and students from minority groups have reported multifaceted forms of racism at universities, with many too afraid to speak out.
Indigenous staff and students endured "structural and interpersonal racism" including their achievements being undermined by others characterising them as special treatment, an Australian Human Rights Commission report found.
"Limited understanding of historical and systemic discrimination remains a barrier to equity," said the interim report into racism at universities, delivered on Thursday.
The Jewish community warned of a rise in anti-Semitism since the war in Gaza began in October 2023, saying it faced extremist propaganda, intimidation and exclusion.
"Concerns over safety were compounded by insufficient university responses," the report said.
Palestinians, Arabs and Muslims described hostility, threats and discriminatory practices such as restrictions on cultural expression and prayer spaces.
Many didn't want to speak out for fear of academic repercussions.
Africans and Asians encountered severe racism and often had to moderate and self-censor how they expressed themselves, while international students reported exclusion, social isolation and feeling like they were reduced to "cash cows".
Race Discrimination Commissioner Giridharan Sivaraman said universities played a critical role in providing academic qualifications and "are gateways to opportunity that can either address inequality or exacerbate it".
"However, structural racism has been legitimised by Australia's colonial history and remains embedded in our society," he said in the report's foreword.
"Universities are not inoculated from racism by the intellectual endeavour that takes place within them."
There had been significant increases in reports of anti-Semitism, Islamophobia and anti-Palestinian and anti-Arab racism at universities and "each of those experiences is unique and not to be conflated one with the other", Mr Sivaraman said.
The findings fit in with research and data from Jewish and Islamic community groups that have reported significant spikes in reports of anti-Semitic and Islamophobic abuse, harassment and intimidation since the war in Gaza.
Racism carried many negative implications, including poorer life outcomes, an impact on mental and physical health and challenges with academic performance, retention and progression.
Staff and students told the commission about low rates of racial literacy, including people not recognising racism, a lack of safety and support on campus and dissatisfaction with complaint mechanisms.
Jewish students were staying away from campus due to concerns over their safety, while African students spoke of discrimination in accessing workplace placements due to bias.
"Consultations also suggest that conversations about racism are shut down and there is a reluctance to discuss institutional and structural racism," the commission's report said.
The commission will put out a national survey and start focus groups in January before delivering its final report with a list of recommendations to the federal government in June 2025.
Previous research highlighted racism endured by Arabs and Muslims following the 9/11 terror attacks, the exploitation of international students in the pandemic and Indigenous people feeling culturally unsafe, the commission said.
These will be focal points of its 2025 racism study.
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