The United Nations has warned Australia that discrimination against Muslims and Aboriginals is 'on the rise' and it must 'put an end to racist hate speech'.

The damning review was blasted by Multicultural Affairs Minister Zed Seselja, who lashed out at the global organisation's 'bizarre criticism', the Sydney Morning Herald reported.

The report outlined 16 areas where improvement was needed including the welfare and status of Indigenous Australians, asylum seekers and migrant workers.

It also claimed Arabs, Muslims, Africans, South Asians and Indigenous Australians were 'particularly affected by racist hate speech and violence'.

The United Nations has warned Australia that discrimination against Muslims and Aboriginals is 'on the rise'

Multicultural Affairs Minister Zed Seselja (pictured) lashed out at the global organisation's 'bizarre criticism

A number of proposals to remedy the issues were put forward including one recommending to effectively censor aspects of the media and public commentary.

The document put forward an idea to take another look at section 18C of the Racial Discrimination Act which should be better policed by 'law enforcement officials'.

The UN report also questioned whether the lack of racial discrimination complaints that made it before the high court were due to high costs and the burden of proof required.

Section 18C says it is unlawful to offend, insult or humiliate someone on the basis of race.

A recommendation was made to censor some media and public commentary (pictured: protesters clash during a demonstration outside Milo Yiannopoulos' sold out show at the Melbourne Pavilion)

The UN report also questioned the lack of racial discrimination complaints (pictured: police officers holding a man after he made a disturbance at Cronulla beach in Sydney)

Following the review released in Geneva on Friday, the Committee for the Elimination of Racial Discrimination stated 'expressions of racism, racial discrimination, and xenophobia, including in the public sphere and political debates as well as in the media, are on the rise' in Australia.

The findings were put together off submissions and testimony from non-government organisations, communities and Australian governments.

Senator Seselja said the Turnbull government 'completely rejects this bizarre criticism' and that a successful multicultural Australia 'is only possible, if at the same time, our borders are secure and our nation is safe'.

Politicians were singled out in the report, stating Australia could fight against xenophobia by ensuring public servants 'not only refrain from such speech but also formally reject and condemn hate speech'.

The media was also recommended to 'put an end to racist hate speech' in print and online while ensuring a 'code of good conduct' with clear restrictions on racism.

A woman protester with a megaphone speaks during a protest, organized by Aboriginal rights activists on Australia Day in Melbourne, Australia in January