A decision to revoke the approval of the Islamic School of Canberra has been upheld after a review by a senior officer in the federal education department.
The decision, announced by Education Minister Simon Birmingham on Friday, means the school will no longer receive government funding from December 16.
The original decision was based on concerns about the school authority's governance and financial management arrangements.
'No choice'
In a statement Education Minister Simon Birmingham said the department "has accommodated repeated requests for deadline extensions but the School's authority has failed to address it non-compliance issues to meet the basic requirements of the Education Act."
"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 statement said.
Senator Birmingham urged the School’s authorities to outline its future plans "to give certainty to its students and families."
The independent school was receiving around $1 million in public money every year.
Education Minister Simon Birmingham's office released a statement in April saying the department had "no choice" but to cut off funding from July 1 after it failed to meet the education department's demands that it improve its governance and financial management.
The department put the school on notice in December 2015, warning that the school was failing to meet standards and community expectations.
The school lost its funding in April last year, but had it reinstated in September after it promised to make improvements.