I'm a little late to the party, but you seemed curious and I thought I'd answer in regards to my parents. It's probably worth mentioning they're in their mid 50's.

I grew up in, and they still live in, a small town. Their racism stems mostly from observed behaviour. For example:

We had an elderly aboriginal lady move in next door to us and my parents had a friendly neighbourly relationship with her. There was also one of her sons, around my fathers age, who would frequently visit her. From our neighbours words, not mine, they were the Elders (in the aboriginal sense) of everyone else who would come to visit or live there.

Within 6 months of living there there was over 25 people living in a 3 bedroom house. They managed to burn the fence down, kick about 14 panels of our fence down, burn the front door down, steel 4 pairs of my dad's boots, burn a car out the back yard, have 8 altercations with another aboriginal family down the road resulting in police intervention (more without the police being involved) and infants, still in nappies, would scale 6 foot fences to steal items from our back yard. Other small children (around 10 years old) would frequently come into our front yard, cut off a length of hose, go back home and drink petrol from the cars parked on their front lawn.

The only way my parents could get anything returned or issues resolved was to talk to the Elders.

Asking my parents about it they have no problems at all with their generation of aboriginal people and see them as very trustworthy and hard workers. It's my generation and below that, in their opinion, have no respect or motivation for anything. While my parents understand the atrocities that were befallen the aboriginal people by our ancestors, they don't understand what needs to be done now to bridge that gap. My parents feel as though we've taken a step by acknowledging and apologising for the stolen generation, but they haven't seen 'their side' take a step other than to ask us to feel more guilty.

They don't hate aboriginals because they're aboriginal. They hate them because they don't work, get 'hand outs', have government grants for schooling and work and are a generally burden on society. My parents feel if you are to be treated equally, then you are to be held to the same accountability as others. I've also noticed they don't see 'dole bludging' aboriginals any differently than 'dole bludging' white Australians.