AUSTRALIA'S largest Islamic school, with a campus at Greenacre, has had its funding restored by Federal Education Minister Dan Tehan.
The future of Malek Fahd Islamic School, with 2,500 students from kindergarten to Year 12, looked uncertain after a full bench of the Federal Court dismissed an appeal against its $19 million federal funding cut earlier this year.
Former federal education minister Simon Birmingham cut Malek Fhad's funding in 2016, after it was discovered the school was operating at a profit, and identified several governance issues.
Minister Tehan said the school had rectified management issues, with new governance and financial arrangements now in place.
"This decision will provide certainty into the future for students and the school community," he said.
To remain an approved authority, the school will need to meet a number of additional conditions, including ensuring the Board is demonstrably independent of the Australian Federation of Islamic Councils, and demonstrates that sale or lease arrangements for school land are commercially sound. The school's Greenacre campus is on land owned by the Australian Federation of Islamic Councils.
The school must also maintain a separate bank account for its federal recurrent funding.
"The Education Department reserves the right to consider compliance action if these conditions are not met," Minister Tehan said.