Well Armihole isn't all that multi-cutlural but my parents lived in the NT (up north) where lots of indonesians come down to have babies etc etc etc, so they're pretty accepting but generally people in Armi and surrounding areas are racists.
A white girl in my year called one of my friends a "fucking Asian" and the joke making the rounds at the moment was made up by one of my friends:
Q. What do you call a bunch of aboriginals rolling down a hill?
A. An Abalanche
Q. What is it called when they run back up?
A. Black Magic
Witty. REAL witty.
Also there's this HUGE joke that a girl in my year is German. She isn't. Shes Australian but someone stuck Swastikas all over her locker last year...