Premier Denis Napthine has declared there are limits on freedom of speech, with racial vilification never welcome in Victoria.

Responding to questions about Attorney-General George Brandis' comments that Australians were free to be bigots, Dr Napthine said Victoria had a proud history of multiculturalism.

"While we as members of the Coalition strongly support free speech, it is not unlimited free speech. People aren't free to vilify others on the basis of race or religion," Dr Napthine said.

"Free speech is a valuable commodity which we preserve and protect but there quite rightly is restriction on free speech in the best interest of the good order of the community and common sense."

Dr Napthine said Victoria's anti-vilification laws were effective – it is offence for people to make comments that incite racial hatred and vilification.

The Premier declined to comment directly on Senator Brandis' comments that Australians had a right to be bigoted.

"Victoria is proudly the multicultural capital of Australia, we have a diverse harmonious community," he said.

Asked directly if he supported the federal Coalition's plans to change the controversial section 18C of the Racial Discrimination Act, Dr Napthine did not directly answer the question.

"We want to protect freedom of speech, but it is not unlimited freedom of speech. There has always been rules around defamation, slander and libel, and in Victoria we have effective rules on racial and religious vilification," Dr Napthine said.

In Canberra on Tuesday, Senator Brandis announced the government's proposed changes to the Racial Discrimination Act.

Section 18C, in its current form, makes it unlawful for someone to do an act that is reasonably likely to "offend, insult, humiliate or intimidate" someone because of their race or ethnicity.

The Attorney-General wants to remove the words "offend, insult and humiliate" but to leave intimidate, which he said provoked fear.