Pauline Hanson's claim that Australia is "at risk of being swamped by Muslims" has been recognised by the NSW upper house as causing "deep hurt" and undermining "a harmonious and respectful multicultural society in Australia".
The motion, put by the Greens MLC Mehreen Faruqi - the first Muslim woman elected to any Australian parliament - also saw the upper house condemn "all forms of bigotry, racism and Islamophobia".
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The motion was unanimously passed by the Legislative Council on Tuesday.
In response, a spokesman said Senator Hanson had no comment but added: "We'll organise some tissues. Whether we gift wrap them or not is another matter".
Senator Hanson made the comments in her inaugural speech last week, echoing her 1996 inaugural speech to the House of Representatives in which she claimed Australia was "in danger of being swamped by Asians".
On Tuesday Dr Faruqi moved that the Legislative Council notes Senator Hanson's most recent comments and "recognises the deep hurt caused by Senator Hanson's comments to Muslim Australians".
The motion saw the upper house recognise that the comments "undermine a harmonious and respectful multicultural society in Australia" and that it "condemns all forms of bigotry, racism and Islamophobia".
It also reaffirmed the Legislative Council's "support for a multicultural Australia where people of all races and religions are welcome".
Dr Faruqi said she was "so proud that all parties in the NSW Parliament have recognised the deep hurt caused by Senator Hanson's comments to the Muslim community".
"We will not sit back and accept racism, Islamophobia and the marginalisation of members of our multicultural community," she said.
"We need to call it out whether it happens in the streets or in Federal Parliament.
"We all love the rich, vibrant and diverse tapestry of multicultural NSW where people of all races and religions are welcome.
"Senator Hanson's divisive comments target certain communities and undermine respect that we all owe each other in an inclusive society."