The Australian National University is investigating an alleged case of religious harassment that took place against Jewish students.
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The allegation has prompted federal Education Minister Christopher Pyne to urge universities to crack down on campus racism.
ANU pro-vice-chancellor Richard Baker is personally investigating an alleged exchange that occurred last month during Market Day.
Two female students who did not wish to be identified were running the Jewish Students Association stall to recruit fellow Jews to a group of which they are co-presidents.
In the first of three alleged incidents on the day, a paper aeroplane landed by their stall.
''We opened it up out of curiosity and on one side it said 'death to the Zionist entity, love from Hamas' and on the other side was the petition from the Socialist Alternative group,'' one of the women, a second year student, said.
Later in the day, her co-president was verbally harassed after declining to sign the petition being run by the Socialist Alternative.
''She said 'no thank you' and they said to her 'that'd be right, Israeli bitch'.''
When she declined a pamphlet later in the day, she says she was called a ''filthy Jew''.
''When I saw the note it was confronting and very shocking because it was unprovoked. But it wasn't said to my face - I was extremely shocked that someone would actually have the nerve to say that.
''We hadn't done anything, we weren't promoting anything Zionist, we were just basically a Jewish social group trying to attract the Jewish community.''
Mr Pyne has called on universities to take a firm line against racism.
''Free speech in Australia does not extend to threats, intimidation and physical harassment. Incidents such as these have no place on campus or anywhere else,'' a spokesman for the minister said.
The ANU students initially reported the incidents to their students association and then the Australasian Union of Jewish Students, which made the official complaint to the university.
An ANU spokeswoman said Professor Baker has raised the allegations with the Socialist Alternative in writing, to which a response is required by 17 March.
''As you will appreciate the university views these matters very seriously. Tolerance of diversity and the free debate of ideas are fundamental to the concept of a university,'' Professor Baker wrote.
The university is also checking CCTV footage to see if any incident was captured.
The ANU spokeswoman said if the allegations were substantiated, the people involved would be subject to the university's disciplinary code. This could range from mediation to being asked to leave the university, or if the people involved were visitors, they could be banned from visits.
The Socialist Alternative said the claims the abuse came from their members is ''completely ludicrous''.
''We are proud of our record of consistently opposing racism in all its forms, including anti-Semitism,'' the Canberra branch said in a statement.
''Two of the Socialist Alternative members who were present at ANU Market Day are themselves Jewish.''
Corey Oakley, a national spokesman for the Socialist Alternative said the group was considering its response.
''We have made inquiries … and are confident that no such comments were made by our members. We consider the accusations to be a malicious attempt to smear Palestine solidarity activists as anti-Semites,'' he said.
