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Yes there does seem to be an exaggerated threat of terrorism from the media and politicians. I would not put it in the top 100 risks to the average Australians safety, you are more likely to be struck by lightening (and therefore avoid living on hilltops, etc.. where does it stop).

I think once you have lived among other cultures for a while race awareness tends to fade away and you feel no need to live within ones own race. It?s only those that have not experienced other races so much that might have some xenophobia and feel a need to live with ones own. Actually...