Race hate laws could be changed to ban speech that harasses or intimidates people, but the decision to push for it will be up to Prime Minister Malcolm Turnbull.
A parliamentary inquiry into the Racial Discrimination Act will deliver its recommendation on Tuesday, including options for changing section 18C, which currently bans speech that offends, insults, humiliates or intimidates someone based on race.
It will also suggest changes to section 18D, which provides protections for artistic, academic and journalistic work, Fairfax Media reported.
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Liberal backbencher Tim Wilson, a former human rights commissioner, says the prime minister understands the need for change, despite Mr Turnbull previously resisting calls to overhaul the laws.
"I'd like to see the committee recommend some reform of the law, particularly around establishing a new test that is not focused on subjective standards like whether someone's offended, insulted or humiliated, and something that's much more objective," he told ABC radio on Tuesday.
He said the concerns of Liberal MPs representing multicultural electorates over any changes had been whipped up by Labor and others.
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Labor multicultural affairs spokesman Tony Burke said the opposition would continue to fight any change to the law.
"Any change that results in more permission being given for racial hate speech is bad for Australia," he told the ABC.
Human Rights Commission president Gillian Triggs will face a Senate estimates hearing on Tuesday morning, where she is expected to be grilled about how the body investigates breaches of section 18C.
The commission has come under fire from coalition MPs, especially for its handling of a case involving students from the Queensland University of Technology.
