There is a degree of enculturated difference though - in the UK "****" is a deeply offensive term, while in Australia it's just shorthand for "Pakistani", most often used in relation to the cricket team ie "it's the Pakis versus the Pom at the Gabba". So offensive it's censored by the UM automatic censor.
We even have potentially offensive terms for other states here, Banana Benders for Queensland, Mexicans for New South Wales, we call the people of Tasmania inbred and so forth.
The words are potentially offensive but the use isn't. Nine times out of eleven.
Edited by Wearer of Hats, 10 December 2012 - 09:36 PM.