Many Australians believe it's acceptable to discriminate against indigenous Australians, with one in 10 saying they would make a joke about an Aboriginal person.
The findings come from research carried out by BeyondBlue into racism and discrimination faced by Aboriginal and Torres Strait Islander Australians.
Racism, like any form of discrimination, leads to distress, which in turn can lead to depression and anxiety.
BeyondBlue has launched a new campaign that highlights how such discrimination - subtle or otherwise - contributes to depression, anxiety and mental illness in people who are targeted.
The Invisible Discriminator campaign features powerful TV advertisements which show non-Indigenous Australians treating Indigenous Australians with suspicion or disregard in everyday settings.
Watch advertisment below:
In a statement, BeyondBlue Chairman Jeff Kennett said the findings highlighted a need for greater awareness.
“This research shows that racism in Australia is still common and that many people engage in racist behaviour," he said.
"Racism, like any form of discrimination, leads to distress, which in turn can lead to depression and anxiety.
"We have launched this campaign to tell people that it doesn’t matter if it’s subtle or overt – racism is still racism and it ruins lives.
"ABS data tells us that Indigenous Australians are twice as likely to die by suicide as non-Indigenous Australians, and are almost three times more likely to experience psychological distress.
“Racial discrimination contributes to these tragic statistics and it’s about time things changed."
More than 1,000 non-Indigenous Australians were surveyed for the TNS survey, which showed almost half thought Indigenous Australians were given “unfair advantage” by the government.
Thirty seven per cent of respondents said they thought Indigenous Australians were "sometimes a bit lazy" and one in five said they would move away if an Indigenous Australian sat near them.
Behind the scenes
Nova Peris says subtle racism can contribute to depression:
* Readers seeking support and information about suicide prevention can contact Lifeline on 13 11 14 or Suicide Call Back Service 1300 659 467 or follow @LifelineAust @OntheLineAus @kidshelp @beyondblue @headspace_aus @ReachOut_AUS on Twitter.
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