The Indian Oscar winner urged the media not to go overboard.
"We need a more responsible media. Media is a great tool but it can also be misused and provoke people. Just one wrong can kill thousands of people. That's happened in the past, and we need to be extremely careful and strict about what we are - the truth, " Rahman told a press conference here Thursday.
"I was speaking to a lot of people. They were saying that some of them (attacks) are racial killings, some are not. But everything gets painted in the same colour, and we have to be very careful on that, " he added.
Rahman's remarks came after a string of attacks on Indians, mainly students, in the country, the latest being a fire at a Melbourne gurdwara.
Rahman is slated to perform Saturday at the Parramatta Park as part of the Festival of Sydney, and he says it is a step forward to bridge the gap between the two countries.
"This country is reaffirming the friendship, and I hope that this concert brings that and I'm sure it will, hopefully, " said the 44-year-old.
"Australia has taken this first step, they called me. I think any art form, whether it's a movie or whether it's a concert, you see all kinds of people in one, " he added.
Rahman, who is known internationally for composing the song "Jai Ho" from Danny Boyle's "Slumdog Millionaire", also gave safety tips to people.
"Regarding safety, I would advise not to go anywhere at night, especially in shady places where there are a lot of drug addicts and alcoholics. Be careful because they are going to be the main reason for any trouble, " he said.