The racial attacks have happened in the past and they are seen as isolated incidents. Almost every foreigner in Australia would confirm that they have faced racial slurs while travelling in trains or on the streets of Australia.
The punishments are never harsh and the trouble makers are never bothered about that aspect.
Read more about this on these links.
http://news.google.com.au/news?sourceid=navclient&rlz=1T4ADBF_enAU227AU228&q=australia+-+land+of+racism&um=1&ie=UTF-8&hl=en&ei=Yf8fSpfKGdCAkQXIr4WZBQ&sa=X&oi=news_group&resnum=1&ct=title
http://www.brisbanetimes.com.au/world/india-outraged-by-brutal-student-bashings-20090528-boxu.html