After hours of debate, Labor, the Greens and some crossbenchers voted down a bill to introduce widely-criticised amendments to the wording of section 18C of the Act.
Labor's leader in the Senate, Penny Wong, moved a motion early to remove the federal government's proposed wording and other changes, and keep section 18C of the Racial Discrimination Act as it is.
The amendments were defeated 31-28 with the support of the Greens, the Nick Xenophon Team and independent senator Jaqui Lambie.
One Nation, and senators Derryn Hinch and David Leyonhjelm, voted with the government.
The Coalition was seeking to change the language of the Act by replacing the terms "offend", "humiliate" and "insult" with "harass and intimidate".
It also wanted to include what's known as a 'reasonable person test', requiring claims under the legislation to be seen to satisfy the judgment of a member of the broader community.
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