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Racism
I have always thought of Australia as one of the most accepting places in the world (except New Zealand, who I freely admit has us well-and-truly beaten). I'll admit there are strong prejudices against aborigines in same places, particularly where there are many who are unemployed and troublemakers. Not their fault, not at all, but unfortunately they do have a tendency to stick out because they are not white. It's sad, really.
That said, I went to school with an Aboriginal girl, and I never saw her picked on. Not once. So we're really not that bad over here. We try, we really do.
As for the not apologising, I believe that's because the government doesn't want to be sued! What a sad world we live in where we can't say sorry for fear of legal action.