It's business as usual for the Islamic School of Canberra despite losing its federal funding for failing to address the government's concerns regarding its financial management and governance arrangements.
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Education Minister Simon Birmingham announced on Friday the government would uphold its decision to revoke the school's $1 million in annual funds following an independent internal review.
"The department has accommodated repeated requests for deadline extensions but the school's authority has failed to address its non-compliance issues to meet the basic requirements of the Education Act," Senator Birmingham said.
"The decision means from 16 December 2017, the authority will no longer receive Australian government funding.
"The school can continue to operate as long as it remains registered by the ACT government and is financially viable."
The federal government's concern was the school's link with the Australian Federation of Islamic Councils.
The Islamic School of Canberra rented from AFIC and borrowed several million dollars from the organisation to help see it through a previous funding cut. The relationship between the school and AFIC has been the subject of reviews and audits for several years.
The Islamic Practice and Dawah Circle, a not-for-profit behind mosques and multicultural religious centres throughout Australia, has applied to become the Weston school's new authority and has committed to funding it until federal money is reinstated.
The group has paid AFIC for the school's lease and has submitted an application to run the school to the ACT Education Directorate.
Islamic School of Canberra principal David Johns said the new school board would discuss its options after Friday's announcements, including seeking a review through the Administrative Appeals Tribunal or appealing to the government for a further extension of funding during the transfer of lease.
He assured families it was "all stations go" thanks to the Islamic Practice and Dawah Circle's funding commitment.
"We've got enrolments contacting us every day, our enrolments are continuing to climb, the atmosphere and the fervour around the community about the school has been very positive and we're not going anywhere," he said.
An ACT Education Directorate spokeswoman said the Islamic School of Canberra was registered with the ACT government until December 31.
"The Islamic School of Canberra is currently seeking to renew its registration with the ACT Government for 2018 under a new proprietor," she said.
"If the school meets the ACT's registration renewal requirements the new proprietor would also need to be assessed by the Commonwealth as an 'approved authority' under the Australian Education Act 2013 in order to receive on going Commonwealth Funding.
"Any parents with questions in relation to schooling options for students should phone 1800 240 584."
