University students have celebrated the start of exams with a "politically incorrect" themed party at a pub in Wagga Wagga, with some attendees dressed as members of the Ku Klux Klan and another in Blackface.
The image shows five people in KKK costumes standing behind a man in Blackface - his whole body painted - apparently trying to resemble a slave picking cotton.
News spread fast on social media after an Indigenous man shared a screenshot of the image on Facebook on Thursday, commenting in disbelief.
"Wow. I went to school with these so called university educated losers... They need kicking out of university. Is this what they teach them out there", he said in the post.
The original post was shared on Facebook and Instagram, with many people liking and loving the post, however the profiles of those believed to be involved have either deactivated their accounts or set them to private.
The party was organised on Facebook as an exam period celebration, with students attending told to "grab a kit that would legally get you in sh--".
Charles Sturt University said it is investigating.
"Charles Sturt University (CSU) will not tolerate this offensive behaviour. It does not reflect our university values and we strongly condemn these actions."
A long list of replies to a tweet by Koori Brotha include Indigenous Australian author Dr Anita Heiss saying the university needed to look into the matter.
In a statement the Black Swan Hotel said staff were "unaware of this behaviour happening out the back of the pub", according to New Matilda.
"We have zero tolerance and do not condone this sort of behaviour."