West Australian Liberal Indigenous MP Ken Wyatt has threatened to cross the floor if the Coalition moves to strip away racial vilification protections from Commonwealth law.

The Coalition promised during the election to repeal Section 18C of the Racial Discrimination Act, which makes it unlawful to "offend, insult, humiliate or intimidate" a person on racial or ethnic grounds.

The Government has not yet put forward precise changes, but Coalition MPs are actively discussing the issue and several raised it in their party room meeting this morning.

The ABC understands Mr Wyatt, who is Australia's first Indigenous Lower House MP, told his colleagues he will cross the floor if the Government moves to repeal the provisions dealing with racial vilification.

Several other MPs flagged the need to treat the issue with caution.

Party elder Phillip Ruddock did not specifically discuss the Act but said it is important the party maintains its record on anti-discrimination.

Conservative columnist Andrew Bolt was prosecuted under the Act in 2011.

The Prime Minister told the meeting all Coalition MPs believe in freedom of speech and are also against racism.

He also said the party believed Bolt should not have been prosecuted.

Mr Abbott said the party has to decide how to reconcile the three factors but was very confident the Government had a way forward that will ensure racial vilification is proscribed.

Another MP said freedom of speech was a "god-given" right.

Attorney-General George Brandis is now reportedly looking at re-writing other parts of the legislation which deal with whether a person acts in "good faith".

Bolt was sued in the Federal Court by nine Aboriginal people, including former ATSIC chairman Geoff Clark.

The group alleged that two articles written by Bolt implied light-skinned people who identified as Aboriginal did so for personal gain.

Bolt argued his articles were fair and were within the laws of free speech provisions.

The Federal Court found Bolt had breached the Act because the articles were not written in good faith and contained factual errors.

It said the articles would have offended a reasonable member of the Aboriginal community.

Human Rights Commissioner Tim Wilson, who is a former policy director for free market think-tank the Institute of Public Affairs and a Liberal Party member, is in favour of repealing section 18C.