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More than half of Australians surveyed who play community sport report experiencing or witnessing racism, a new study led by Monash University shows.

The startling , from a survey canvassing the experiences of Australians playing community sport, found 30% of participants had directly experienced racism, with a further 26% having witnessed it.

As a result, 20% of those targeted reduced or changed their participation.

The survey is part of research led by Monash University in collaboration with Victoria University, Melbourne University, VicHealth, Center for Multicultural Youth's CMSport, and Rob Hyatt from the Koorie Heritage Trust to help the Victorian community sport sector address racial discrimination.

Lead researcher Professor Ruth Jeanes, Head of the Monash School of Curriculum, Teaching and Inclusive Education in the Faculty of Education, said the findings show racism is prevalent in community sport.

"This isn't about isolated incidents," Professor Jeanes said.

"These numbers show racism is occurring regularly in community sport, with incidents ranging from overt abuse to subtle exclusion and bias.

"Community sport is celebrated for its contributions to physical and mental health, social connection and inclusion.

"Yet, for some, this ideal remains out of reach."

The survey elicited responses from almost 350 Australians aged over 18 years who participated in a total of up to 50 community sports last year.

VicHealth acting CEO Kris Cooney said the key to addressing the problem required a concerted community effort.

"We must work together to create safe and welcoming sporting environments where people of all backgrounds feel safe to participate and be themselves," she said.

"Participation in local sport is good for everyone's physical and mental well-being.

"For people from multicultural and First Nations communities, the sense of belonging and social connection they get from community sport is particularly important."

Center for Multicultural Youth and CMSport CEO Carmel Guerra OAM said racism can be a huge barrier to participation in sport, and is particularly concerning given how important community sport is to forging connections and a sense of belonging for new migrants.

"The findings give a really clear picture of the prevalence of racism in community sport in Australia, which is sadly unsurprising to us and echoes what multicultural youth have been telling us for many years," she said.

"We're proud to be working with the sector to proactively tackle the issue of racism head on and create more inclusive, culturally safe environments for young people and their families to participate in community sport."