Education Minister Christopher Pyne says the process for consulting on changes to the Racial Discrimination Act has worked exactly as it's supposed to.
"We should be getting a tick for listening, rather than being criticised for changing our course," he told Sky News on Sunday.
Prime Minister Tony Abbott had promised before the 2013 election he would repeal Section 18C of the Act, which makes it illegal to offend, insult or humiliate a person based on their ethnicity.
More than 5500 submissions flooded into the Attorney-General's office following the release of draft laws in March and Mr Pyne said it was clear there was general community support for the Act to stay unchanged.
Mr Abbott announced on Tuesday the government had dumped its plans because it needed to get everybody on "Team Australia" to support stronger anti-terrorism laws.
"We face a serious existential threat to Australia from a new terrorist organisation," Mr Pyne said.'
"Right now, we need every Australian supporting Team Australia ... we don't need any hurdles in the path."
Institute of Public Affairs Director John Roskam says there is "white hot anger" in the community over dumping the changes.
The think tank has taken out full-page newspaper ads to beg Mr Abbott to reconsider.
Mr Roskam says the prime minister's message was essentially that free speech was negotiable.
"Freedom of speech is to be traded away in exchange for the right to protect ourselves," he told Sky News.
"That is very concerning."
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