A judge has thrown out a case against three Queensland University of Technology (QUT) students who were accused of racially vilifying an Indigenous woman.

Key points: Racial vilification case against three QUT students thrown out of court

Racial vilification case against three QUT students thrown out of court Prime Minister will allow a review into Section 18c of the Racial Discrimination Act

Prime Minister will allow a review into Section 18c of the Racial Discrimination Act Tony Morris QC said case should never have made it to court

Alex Wood, Jackson Powell and Calum Thwaites were being sued under section 18c of the Racial Discrimination Act over social media posts they allegedly made in 2013.

Indigenous administrative officer Cynthia Prior claimed she had been vilified by the men on Facebook after she asked one of them to leave a computer lab reserved for Indigenous students at QUT.

In March, the trio applied to have the case struck out before it proceeded to trial.

Federal Circuit Court Justice Michael Jarrett handed down his decision in Brisbane this afternoon.

Section 18c of the Racial Discrimination Act makes it unlawful for someone to do an act that is reasonably likely to "offend, insult, humiliate or intimidate" someone because of their race or ethnicity.

The court decision comes after Prime Minister Malcolm Turnbull indicated he would not stand in the way of an inquiry into the Racial Discrimination Act.

A number of Coalition MPs called for the words "insult" and "offend" to be removed from section 18c of the act, arguing that they impede free speech.

Liberal senator James Paterson, one of many backbenchers who has called for the law to be changed, welcomed the court decision on Friday.

"While I am relieved the judge has finally declared the students have no case to answer, they should never had been subject to such an appalling legal process," he said.

Tony Morris, QC, said everyone involved is a vicitm. ( ABC News: Sharnie Kim )

"The judgement doesn't give them back that time, or their reputations, or the stress of having to endures these false allegations and defend themselves."

The case should never have made it to court

Tony Morris, QC, who was representing Mr Thwaites, said the case should never have made it to court.

"There is one person to blame for that, one person, and that's Professor [Gillian] Triggs, the head of the Australian Human Rights Commission," Mr Morris said.

"She has a job to do under the anti-discrimination legislation and that is to inquire into every complaint that comes into her office.

"In this case, Triggs sat on the complaint for 14 months before these kids even learnt that they had a complaint."

Mr Morris said Professor Triggs should have dismissed the matter.

"Whilst the young men who have been the subject of this particular litigation are victims, so is Miss Pryor, the complainant," Mr Morris said.

"Who can blame her for acting on the encouragement that she gets from the Human Rights Commission?

"Everyone is a victim here."

In a tweet, the Australian Human Rights Commission said it respected the Federal Court decision.