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Critics say Pauline Hanson's motion, pictured in 2017, was a publicity stunt
The Australian Senate narrowly rejected a motion condemning "anti-white racism" by only three votes.
Pauline Hanson, leader of Australia's far-right party One Nation, called for support for her motion that said "it's good to be white".
He also spoke of "the deplorable rise of anti-white racism and attacks on Western civilization".
Critics dismissed the criticism as another waterfall by Ms. Hanson, who made headlines last year for wearing a burka.
Yet a number of ruling party politicians supported the motion.
Among the 23 people who voted for, was the first Australian parliamentarian of black origin, Lucy Gichuhi, of Kenyan origin, from the government coalition.
Deputy Senate Leader and Minister of Commerce Simon Birmingham, Aboriginal Affairs Minister Nigel Scullion and Deputy National Leader Bridget McKenzie also supported the motion.
Before the vote, Ms. Hanson said that "people have the right to be proud of their culture, whether they are black, white or brindle".
"If we can not agree, I think it's safe to say that anti-white racism is rife in our society," she added.
One of the opponents of the bill, Justice Party Senator Derryn Hinch, called the project a "stuntman."
He added that Ms. Hanson was "in a race" with another of her colleagues "down the drain" by seeing "who can be the biggest, the strongest, the racist bigot".
Trolls of the far right
The phrase "it's good to be white" has been popularized online by right-wing groups.
His inclusion in the motion is also seen as a nod to Canadian activist Lauren Southern, who wore a T-shirt with the inscription "The Key" during her visit to Australia earlier this year.
In March, Ms Southern was denied entry to the UK on the grounds that her actions "constituted a threat to the fundamental interests of the company".
