The advert had appeared on classifieds website Gumtree but has since been taken down.
Tasmania's Anti-Discrimination Commissioner Robin Banks is now looking into the incident.
She told CNN: "I'm certainly going to look at commencing an investigation into what's happening - the role of Gumtree, what Coles' role was, and find out more details about the subcontractor."
Ms Banks was first alerted to the advert after it was posted on her Facebook page.
She said: "One of the things we're trying to encourage in Australia, especially in Tasmania, is for people to do something about it (discrimination), to report it."
The ad was, Ms Banks, said "discriminatory on the basis of race" and breached the Tasmania Anti-Discrimination Act.
She added Coles would be examined to see if it "fulfilled its obligations to ensure its agents do not engage in discrimination" as would Gumtree.
Ms Banks said that although she had never seen a discriminatory job ad on Gumtree before, she had encountered others elsewhere.
"It happens every so often," she said.
According to the 2011 census, 1.4 per cent of Australia's population is of Indian heritage while 1.5 per cent is of Chinese heritage.