Governance standards came into force on Monday, requiring tertiary institutions to adopt definitions of racism, including anti-Semitism, Islamophobia and prejudice against Indigenous people.
But opposition education spokesman Julian Leeser said the government should go further and force universities to use the International Holocaust Remembrance Alliance (IHRA) definition of anti-Semitism.
"The idea that you can walk around your university campus and use Nazi iconography to describe Israel and to describe Jews is just wrong. It's not Australian, and it should have no place on our campuses," he told ABC Radio National on Monday.
"Universities are the place where the next generation of leaders goes to be formed, and the fact that our vice-chancellors are so weak and spineless that they haven't been able to crack down on this shows how much we need this definition adopted."
The alliance definition is used by the federal government, but critics argue its wording risks painting genuine criticism of Israel as anti-Semitic.
Mr Leeser said that was not the case, adding universities had had more than a year to adopt their own definition but failed to do so.
"We will have to drag the government kicking and screaming, because the universities have to be dragged kicking and screaming again to do the right thing," he said.
Home Affairs Minister Tony Burke defended the government's actions, saying they were already a big step forward.
Pressed on why Labor hadn't mandated a specific definition of anti-Semitism, Mr Burke said the principles of wanting students to feel safe were "very clear".
"That's what you want to make sure happens, and clearly that has not been happening," he said.
The government's changes were recommended by the Respect at Uni report - undertaken by the Australian Human Rights Commission - which found more than 90 per cent of Jewish and Palestinian students and staff had experienced discrimination because of their religion or ethnicity.
On top of introducing definitions of racism, universities will also need to implement transparent complaints processes and must allow third-party participation in their decision-making.
They will also need to provide rules for staff and students on actions to increase safety on campus and online.
Public universities will also need to publish the outcomes of governing body meetings and decisions, among other measures.
The Tertiary Education Quality and Standards Agency will work with the sector to develop guidance on how the standards will operate.
Its introduction coincides with the start of a fresh block of anti-Semitism royal commission hearings, examining hatred directed towards Jewish people on campuses.
Experiences outlined in the landmark human rights commission report found students and staff subjected to racist tropes such as petrol-sniffing jokes about Indigenous people.
There was also hostility in classrooms targeting Middle Eastern cultures or religions.
Among the report's 47 recommendations were the creation of national and university-specific anti-racism plans and greater reporting and transparency requirements.
