There has been little discussion in Australia about the different experiences of racism directed towards light-skinned Aboriginal people. Research on racism in Australia has tended to incorporate all Aboriginal people and has not examined in detail the experiences of lighter-skinned Aboriginal people. This paper is based on research that was undertaken as part of a study on light-skinned Aboriginal people with little or no community or kinship ties and how they formulated their cultural identity. The author uses the concept of lateral violence to show how many light-skinned Aboriginal people experience racism both from Aboriginal and non-Aboriginal people. This paper highlights the extensive social and psychological consequences of racism and lateral violence and discusses what this means for social work practice in Australia.