Linda Burney has said Senator Jacinta Nampijinpa Price's comments on migration last week were "completely unacceptable".
Price was demoted from the shadow bench this week after failing the apologise for the comments amongst a heavy political fallout, and also failing to back Opposition Leader Sussan Ley's position.
The former minister for Indigenous Australians questioned why the demotion didn't come sooner.
"Why was she not demoted when she first made the comments? And then when she wouldn't apologise and blamed other people," Ms Burney told the ABC on Thursday.
"At the end of the day, everyone but the First Peoples are migrants in this country, so we all share the migrant story and we should be proud of it."
Andrew Morrison, a Gunditjmara man from Victoria and Champion for Aboriginal Health, said Senator Price brought the demotion on herself.
"Her words singled out communities and fed into the politics of division," Mr Morrison said in a social media post.
“Let’s be clear, she brought this on herself," he said.
Indian community expresses hurt and anger
Amar Singh is the founder of Turbans 4 Australia, a non-profit who provide food hampers to those struggling.
Mr Singh told SBS, the last week has been difficult for the Australian Indian community.
"It's been really hurtful, un-Australian, and at the best a low blow," Mr Singh said.
At a press conference on Thursday morning the Opposition Leader Susan Ley formally apologised for Jacinta Nampijinpa Price's comments on Indian migration on behalf of the Liberal party.
"May I take this opportunity, as leader of the Liberal Party, to apologise to all Indian Australians and indeed others who were hurt and distressed by the comments that were made," Ley said.
"May I reaffirm my strong support for all our migrant communities for the values that they bring to this country, for the contribution they make and for choosing to come to Australia."
Mr Singh welcomed the apology but noted the lingering absence of a direct apology from Senator Price.
"Susan as a leader has apologised which is great but I think it doesn't cut the mustard," Mr Singh said.
"A person has to be responsible for their own actions."
"The liberal Party has their work cut out to repair the damage that's been done."
Senator Price was dumped from the Shadow Ministry on Wednesday evening after she failed to back Sussan Ley's leadership of the Coalition, after a week of controversy over her comments about Indian migrants.
Ley said Price's refusal to endorse her leadership has made the Senator's position as Shadow Defence Industry Minister "untenable".
"Despite being given sufficient time and space to do so, Senator Nampijinpa Price failed to apologise for remarks which have caused Australians of Indian heritage significant hurt," Ley said on Wednesday night.
"She also refused to provide confidence in my leadership of the Liberal Party and sadly, that has made her position untenable in my shadow ministry."
Senator Price made the comments during an interview with the ABC last week, falsely claiming the federal government was prioritising Indian migrants to bolster the Labor vote.
Gurmeet Tuli the President of Little India Australia — a non-profit community organization — told SBS he believes the comments were derogatory.
"I believe it was a racial slur," Mr Tuli said.
Before reiterating calls for Jacinta Nampijinpa Price to provide a personal apology to the Australian Indian community.
"This is not acceptable, we demand that Jacinta should submit [an] apology as well."
Shortly after making the comments, Senator Price issued a statement walking back her remarks, saying:
"Australia maintains a longstanding and bipartisan non-discriminatory migration policy. Suggestions otherwise are a mistake."
This week Senator Price also said her comments were "clumsy" but she has so far refused to apologise, despite calls from several of her Coalition colleagues to do so.
