A watershed moment in the push to wind back racial discrimination laws is set to unfold on Friday, with a Brisbane judge to finally decide on a controversial case involving students at the Queensland University of Technology.

Fairfax Media understands Federal Circuit Court judge Michael Jarrett will hand down his ruling on whether the civil lawsuit, brought under section 18C of the Racial Discrimination Act, should proceed to the next stage.

Opponents of section 18C, which makes it unlawful to "offend, insult, humiliate or intimidate another person" on the grounds of race, believe the case exemplifies why the law should be amended or repealed.

Momentum appears to be building for change, with Prime Minister Malcolm Turnbull considering a parliamentary inquiry into the law, after a strident push by Coalition backbenchers including its entire Senate backbench cohort.