Anti-Semitism is a "sad indictment" on the Australian university sector, a Senate inquiry has found, but holding a royal commission-like investigation into the issue would be "too slow".

A Labor-led Senate inquiry report has labelled universities' responses to anti-Jewish sentiment on campus as "woefully inadequate", after receiving hundreds of submissions from Jewish students saying they felt unsafe during weeks-long pro-Palestine encampments.

University of Sydney vice-chancellor Mark Scott told the inquiry last month he had "failed" Jewish students in his handling of the Students for Palestine protests, labelling the testimony of some students "heartbreaking".

A Senate committee tasked with investigating the merits of a commission of inquiry has blasted the university sector's handling of anti-Semitism.

"It is clear to the committee that university responses to incidents of anti-Semitism, and the fears of Jewish students and staff, have been woefully inadequate," the report said.

But the committee, led by Labor senator Nita Green, has recommended against passing a Coalition bill that would set up a commission of inquiry into anti-Semitism at universities — despite a majority of submitters supporting it.

"The committee is concerned that a commission of inquiry would be too slow," the report said.

"As the committee heard from the Attorney-General's Department, the shortest Commonwealth royal commission in recent years was eight months in duration."

The Coalition's bill, tabled by Liberal senator Sarah Henderson, proposes a commission of inquiry with "royal commission-like powers" would examine incidents of anti-Semitism on campuses both before and after October 7, 2023.

The report has been tabled along with a lengthy dissenting report from Coalition senators, including Senator Henderson and Liberal senator Paul Scarr.

"One of the most powerful reasons for a commission of inquiry is to provide confidence to members of the Jewish community … that they can safely make a submission without fear of reprisals, retaliation, vilification, bullying or even threats to physical safety," the Coalition senators said.

Liberal MP Julian Leeser, who is Jewish, accused Labor of "deserting" the Jewish community.

"Instead of having these issues considered by an independent judicial officer, Jewish Australians will be treated like a political football at a time when Jewish students and staff are feeling especially vulnerable," he said in a statement.

Encampments sprung up at campuses in Sydney, Brisbane, Melbourne, Adelaide and Canberra in May, with participants calling on their teaching institutions to disclose and cut ties with weapons manufacturers they say are supplying arms to Israel.

Mr Scott told a hearing last month he declined an offer from NSW Police to move on a pro-Palestine protest using "riot gear" out of concern it would escalate tensions.

The protesters were eventually moved on following an order from university management.