Australia

I've lived overseas and I disagree.
Australia is no more racist than some other developed and developing nations, and there are countries with more racism than Australia.
Travel to different cities in the US and notice how neighbourhoods are subtlety segregated by race.
Talk to any European about their thoughts on gypsies.
Ask Japanese about their thoughts on Koreans.
Look up the usage of the word "keling" in south east asian cultures.

What we have in Australia is perhaps a more overt style of referring to cultures or differences, but the barriers to integrate with Australian culture is much lower than other countries. For some migrants that have come from cultures where they had a racial privilege (e.g. caste systems), it could now be confronting to them that their standing in Australia is lowered and equalised.

The way that we establish social bonds (banter, joking around, jabs, insults etc) can also be confusing to foreigners and be perceived as racist, but it's an old UK way of establishing camaraderie by proving that you can dish out an insult but also take it as well. Like stand-up comedy material, this method is being tamed as time goes on.

One final indicator of racial division is the level of mixed marriages. If it was a serious problem, we would see low levels of marriages between different countries of origin. In the EU, the rate of mixed marriages is about 8% (1 in 12). In Australia, the rate is 3.5x larger at 29%.