The fate of more than 200 students at the Islamic School of Canberra remains in flux, with the school seeking an extension in order to appeal its loss of $1 million in federal funding.
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Sydney's largest Islamic school, Malek Fahd, meanwhile, has lost its appeal against the Commonwealth revoking its $20 million in funding. This leaves it with just three days luntil its 2400 students have to find alternative schools.
A statement from the Malek Fahd interim board on Monday said the school would immediately apply to the Commonwealth Administrative Appeals Tribunal to seek continuation of public funding.
The cuts to both schools follow a long-running investigation into the way they have been operated by the Australian Federation of Islamic Councils.
Federal Education Minister Simon Birmingham said of his February decisions to revoke funding that the Australian Education Act 2013 required, among other obligations, that all school authorities operated not-for-profit, were financially viable, be a "fit and proper person" and ensure that funding provided was used only for school education.
These conditions for funding had not been met, according to the Federal Education Department.
Meanwhile the department said that the Canberra Islamic School had "sought additional time in which to seek an internal review of the decision to cease funding to the school".
"The department has granted an extension until April 26, 2016, for the authority to apply for an internal review, however the decision to revoke funding as at April 8, 2016, remains in effect."
Islamic Council of Canberra chairman Mohammed Berjaoui, who is also the school's financial manager, could not be contacted for comment on Monday.
ACT Education Minister Shane Rattenbury said he had been notified that the school intended to appeal the funding cut.
"There has been considerable community effort to support the Islamic School of Canberra since the announcement by the federal government to cease their funding," Mr Rattenbury said.
He said the school provided "a valuable education option for many in the community and it is understandable that there is significant concern within the community about its long term future. It is certainly my hope that we will be able to resolve the issues and ensure the school remains open".
Despite initially providing only provisional registration based on the school receiving federal government funding, Mr Rattenbury has indicated to the school that the ACT government would be prepared to continue its registration should it find a means of becoming financially viable.
