This is a really interesting topic.
As a youngster I did experience some racism as the primary school I went to was predominantly anglo. Since then I can't say I've expereicned so much with the exception of a manager who 'favoured' anglos.
At work my overhead is Turkish and there are no issues there whatsoever. We actually have an excellent work relationship and get along well. I have numerous Skop friends which again don't have an issue with. I'm friends with them for who they are not their nationality. Having said that I avoid getting into 'racial' type discussions with these guys as I don't want it to affect my working relationship with them. They too avoid such discussions with me.
The way I see it, regardless of what my thoughts are, we live in Australia and need to live and work together peacefully.
I have my opiniions (which are strong I might add) but ensure that I discuss these in the appropriate forums

As far as being mistaken for another nationality... This happens to me all the time. I've been told I look Anglo before but I'm mostly told I look Polish, Russian, Lithuanian, Croatian or (God help me) Skop.
I don't mind it so much because I know what my background is and I'm proud of it.
I think whiilst living in a country with so many cultures, sadly there will always be a degree of racism. But then again, that happens everywhere.
I'm sorry I can't comment on the Cypriot issue as both my parents are from Greece.