It is a cancerous scourge undermining people's skin colour and faith, Cr Matthew Evans said.

"That said, our intercultural communities are optimistic and positive people, who not only enrich our community but make a substantial contribution each and every day," he said.

The council approved a new diversity plan on Monday night.

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Cr Margaret O'Rourke said the plan shows the maturity of the city.

She too said Bendigo was still to overcome the "very concerning" racism that existed in some corners of the community, but was embracing actions that celebrated multiculturalism.

"The maturity of this next plan takes this to another level," Cr O'Rourke said.

"We're the first local government in Australia to be accredited as a welcoming city. That speaks volumes."

Cr Julie Sloan thanked people who contributed to the new plan through a workshop she attended with other councillors.

"Some issues that I thought had been long standing in the community were expressed ... and also aspirations for a way forward," she said.

"That was really valuable and very rich data."

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The new plan replaces one introduced in 2016.

It sets out the way the city will work with partner agencies and groups, mayor Andrea Metcalf said in a media release issued after the vote.

"It's important for Greater Bendigo to continue to be a welcoming, inclusive and diverse community where people of all cultural backgrounds belong and participate equally in the city's social, political, and economic life," she said.

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