Labor's ploy to force the House of Representatives to vote on Pauline Hanson's motion declaring "It's OK to be white" has narrowly failed.
After Senator Hanson's motion was rejected in the upper house on Monday despite coalition support, Labor tried to embarrass the government further on Tuesday.
Manager of opposition business Tony Burke's motion in the lower house to reject Senator Hanson's original motion was voted down 71-70.
But the government had taken their own steps to vote again on the motion in the senate after saying they had mistakenly backed it a day earlier.
Liberal and Nationals senators voted against the motion at their second chance on Tuesday.
Senator Hanson's original motion was defeated 31-28 on Monday.
Shadow attorney-general Mark Dreyfus says the government was aware of the 'It's OK to be white' motion since September.
"They had 25 days in which to reflect and work out that this is in fact a battle cry of the white supremacist grubs of our country," Mr Dreyfus told the lower house.
Leader of the House Christopher Pyne accused Labor of using the issue as a stunt before Saturday's Wentworth by-election.