Chinese-Australians teenagers say they face alarming rates of racism in Australia, a new study reveals.

Almost one third of 22,000 Chinese-Australians aged 15 to 19 surveyed by Mission Australia said they had experienced unfair treatment or discrimination based on race.

Chinese-speaking youths reported the highest rates of racial discrimination, at 90 per cent, among the 4,000 teenagers who said they spoke a language other than English at home.

Young Chinese-Australian's are facing shocking rates of discrimination based on their race, a report by Mission Australia reveals

'I've definitely felt discrimination,' Mandarin-speaking and Australian-born Mavis Tian told the ABC.

'Sydney has a lot of Asian tourists and people often think just because you look Asian that you don't speak English and that makes it OK to treat you worse.

The 19-year-old added: 'A lot of the time you go into shops and people say, 'Oh, watch out for the Asian person by the door, keep an eye on her', things like that.'

One in five Aboriginal and Torres Strait Islander young people reported experiencing discrimination on the basis of race or cultural background.

'This is almost double compared to their non-Aboriginal or Torres Strait Islander peers at 28.3 per cent.

Mission Australia CEO Catherine Yeomans told Daily Mail Australia that young Arabic speakers are also facing a worryingly high amount of discrimination.

One in five Aboriginal and Torres Strait Islander young people reported experiencing discrimination on the basis of race or cultural background (stock image)

Mission Australia CEO Catherine Yeomans told Daily Mail Australia that young Arabic speakers are also facing a worryingly high amount of discrimination

She believes this is also rooted with unfair treatment towards their cultural and religious background.

'We are facing unacceptably high levels of discrimination in Australia,' Ms Yeomans said.

'Speaking with staff working with Aboriginal and Torres Strait Islander young people– they identify extreme levels based on race and cultural background.

'They see this play out in applying for jobs and opportunities beyond school.'

Ms Yeomans said that findings from the survey that she found most eye-opening were young people identifying mental health as one of the top three issues facing Australia.

'We have to consider the negative impacts on mental health, which as you can see is a growing concern for young people.'

The percentage of young people indicating mental health as a top national concern has double in the last six years.