Jewish students fearing for their safety at university have sparked calls for a powerful anti-Semitism inquiry.
But concerns have been raised a narrow scope risked pitting racial groups against each other and elevating such sentiment beyond other forms of racism.
Insults and harassment, defaced campuses with swastikas and other chants championing hate had reached crisis point, Australasian Union of Jewish Students president Noah Loven said.
Liberal senator Sarah Henderson argued a standalone judicial inquiry into anti-Semitism was needed, with a broader Australian Human Rights Commission probe into racism at universities deemed inadequate.
A hearing into her proposed legislation on Friday heard distrust over the commission undertaking the inquiry and arguments it couldn't adequately compel evidence and testimony from vice-chancellors and administrators.
The commission's president rejected accusations its inquiry was "woefully inadequate".
Organisations that opposed the standalone judicial inquiry argued it risked conflating political critiques of Israel and anti-Semitism.
It could lead to discrimination against those who criticise Israel and promote academic censorship, the Muslim Votes Matter group said.
Ghaith Krayem questioned the need for an inquiry of this nature after casting doubt about whether anti-Semitism was more prevalent or severe than other forms of racism at universities.
"We're not saying it doesn't exist or it hasn't increased ... we must ask, why does it not address the parallel rise in Islamophobia or anti-Palestinian sentiments which are also pervasive on university campuses?" he said.
The Jewish Council of Australia said an inquiry solely into anti-Semitism risked pitting groups against each other.
Carving out anti-Semitism risked "creating a perception of a hierarchy of racism" and could stoke further division, executive officer Sarah Schwartz warned as she backed an inquiry into all racism on campus.
But raising other forms of racism alongside accusations of anti-Semitism minimised the experience of Jews, Executive Council of Australian Jewry's Simone Abel said.
Free speech principles were being used as cover for hate speech on campuses and by protesters, Zionist Federation of Australia CEO Alon Cassuto said.
"It's undeniable since October 7 there has been an explosion of hostile, violent and anti-Semitic incidents on campuses across Australia," he said.
There had been no consequences for protesters chanting anti-Semitic remarks and targeting Jews, he said.
University representatives disagreed, saying appropriate action had been taken.
They expressed concern about the rise of anti-Semitism, but argued the bill was too narrowly focused as it needed to be tackled as a society-wide issue.
Concerns were raised clauses of the bill that would examine steps to address anti-Semitism in teaching material such as lectures and seminars could stifle free speech and academic freedom.
These principles had to be stridently protected by universities, including under law, Universities Australia CEO Luke Sheehy said.
He made clear freedom of speech didn't extend to hate and violence.
The experiences of Jewish students and staff "tell a very different, far more troubling story" with there being a lack of trust between Jewish students and staff and their universities, Mr Cassuto said.
University of Sydney vice chancellor Mark Scott apologised after reading the "heartbreaking and unacceptable" submissions about Jewish students' experiences and acknowledged work was needed to win back trust.
"I recognise we did not always meet the expectations of the Jewish community," he said.
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