Immigration Minister Peter Dutton says Melbourne is “like some parallel universe” following accusations he’s been provoking racism.

Victorian Human Rights Commissioner Kristen Hilton has revealed formal complaints have jumped more than 70 per cent in the past year, with the spike being attributed to politicians, Mr Dutton in particular.

Speaking with Macquarie Radio on Tuesday, Prime Minister Malcolm Turnbull rejected claims his ministers are racist, saying, “it’s nonsense”.

Prime Minister Malcolm Turnbull

Now Peter Dutton has come out swinging in his own defence, telling Ray Hadley, “it’s fairyland stuff”.

“There’s been a 70 per cent spike in the number of complaints to the Human Rights Commissioner in Victoria because I called people involved in home invasions African gang members.

“Even though they’re of African descent and they’re involved in gang activity.

“It’s like some parallel universe going on down there at the moment Ray, where you’re not allowed to refer to these people as in gangs.

“I mean it’s just fairyland stuff.”

Mr Dutton also spoke about government backbencher Craig Kelly’s insensitive MH17 comments.

Liberal MP Craig Kelly

Mr Kelly has backtracked after saying Russia’s crimes should be “slightly looked over” in order for the global good.

Minister Dutton tells Ray he’s satisfied with his colleague’s apology.

“He’s done the right thing, he’s been big enough to apologise for a mistake he’s made. Craig’s a great bloke but he said the wrong thing here.”

Click PLAY below for the full interview