Opposition Leader Tony Abbott has revealed the plan to change the laws if he was made prime minister.
The plan would see sections of the Racial Discrimination Act that were used to prosecute Herald Sun columnist Andrew Bolt last year, after he wrote about light-skinned Aborigines, repealed by the Coalition.
The Australian newspaper reports Shadow Attorney-General George Brandis saying that would mean the removal of provisions that prevent the use of words that could offend or insult.
"We consider that to be an inappropriate limitation on freedom of speech and freedom of public discussion – as was evident in the Andrew Bolt case," he said.
Liability for racial vilification would be limited to comments that humiliate or intimidate.
Don't ever let anyone tell you that Australia's "white" political, media and middle class are an intolerant group of bigoted losers..... great advertisement for Australia's diverse society in the Asian century....