A Canberra Islamic school has been stripped of funding by the Federal Government, which had "no choice" but to act over financial management and governance concerns, according to the Education Minister.
The Education Department today wrote to the Islamic School of Canberra to advise funding would be revoked on June 30, at the end of Term 2.
Education Minister Simon Birmingham said it was disappointing that after a number of chances, the school had "failed to meet the standards and expectations placed on them".
"These conditions centred around improvements to governance and financial management and required regular reporting on progress in making the required changes," Senator Birmingham said.
The department is working with the ACT Government to minimise the impact on the local school community.
"While this is a difficult time for the school, I remain committed to ensuring that all school authorities meet the requirements of the Education Act to ensure that our taxpayer dollars and any private investment by parents is being spent to benefit Australian students." Senator Birmingham said.
ACT Chief Minister Andrew Barr said the Government would look into the implications for the school's viability.
"Our principle role though is to register the school as an accredited education provider in the territory," he said.
"But it also needs to be financially viable and so we'll need to assess what the Commonwealth has determined — but it will certainly have implications for the future of the school."
Neither the Islamic School of Canberra principal or the chairwoman could be contacted for comment.