Family First senator Bob Day is set to introduce a private member's bill to the Parliament proposing to remove the words "insult" and "offend" from section 18C of the act, meaning it would no longer be a prosecutable offence to insult or offend someone based on their race.

Prime Minister Tony Abbott pledged before the 2013 election to repeal section 18C of the act but abandoned his pledge last year after a fierce backlash from religious leaders and many Liberal MPs.

Ms McKenzie said Senator Day's proposed changes were "thoughtful" but she hadn't discussed the matter with her party colleagues.

"I haven't had a chance with everything else that's going on to sit down and formulate my position," she said.

"I am a proponent of free speech, so when it comes before the Senate I'll consider my position then."

Ms McKenzie said free speech "underpins our democracy".

But Member for Bendigo Lisa Chesters called on Ms McKenzie to vote against Senator Day's bill.

"I'm disappointed a senator for Victoria, whose office is in Bendigo, is still undecided on how she'll vote on this," Ms Chesters said.

"In Bendigo we are an inclusive, multicultural community.

"We saw only last year how we rallied together to stand up and say, 'This is Bendigo. Racism stops with Me'. Changes to 18C will allow bigoted behaviour and racist comments to become mainstream."

Ms Chesters was referring to a campaign held in July last year in which 300 people made public pledges to reject racism.

The campaign was initiated by the Australian Human Rights Commission and embraced by the City of Greater Bendigo after heated opposition to a proposed mosque in the city.

-with The Age