I basically agree with what kambuckta says, but I’m not so willing to just gloss over racist comments as being “not really racism.” Australians tend to be, I feel, racist towards groups rather than individuals. Your racist Australian may not have a problem with his Japanese co-worker, but he may complain bitterly about how they’re taking over our cities or some crap.
Just because someone’s nice to people he knows doesn’t excuse stereotyping of groups of people.
Okay, I guess I’m being misunderstood. I said that things are “waaaay different over there” because the same joke wouldn’t make any sense, as far as stereotypes go, unless the races were switched.