Sam Watson, the deputy director of the Aboriginal and Torres Strait Islander Studies Unit at the University of Queensland, said the word "Creole", often used to describe a person of mixed European and African ancestry, was a racially loaded term.

"The word Creole comes from a period when people's humanity was measured by the amount of white blood they had in their bloodstream. This is the same kind of thought that underpinned horrific regimes like the Nazis," Mr Watson said.

"People need to exercise their intellect. This so-called blending was actually the institutionalised rape of black women. They were victims of brutal regimes of rape and victimisation."

Mr Watson described the biscuit name as deeply insensitive and indicative of a "deep undercurrent of racism in white Australian society".

"It virtually infects every level of Australia's consciousness, language, culture and history," he said.