A few months ago one of Australia's largest Islamic schools was on the brink of closing down, but a court win means the southwest Sydney school now has the confidence to plan for 2018 and beyond.
The Federal Court this week set aside the federal government's decision to delay payments to the Malek Fahd Islamic School in Greenacre following concerns of a misuse of funds.
Justice John Griffiths on Monday ruled the school should continue to receive its monthly commonwealth funding and awarded costs to the school.
School board chairman John Bennett says the ruling is "very important" for the 2400-odd students and more than 200 staff members.
"We're making plans for 2018 and beyond because we see the potential in the school," Dr Bennett told AAP on Tuesday.
"Without commonwealth funding, the school can't operate, when they (funds) were delayed, we got very very close to having to bring in administrators."
The decision follows an interim ruling in July that the school should be funded pending a final outcome amid concerns it would otherwise be forced to shut down.
But the school isn't completely in the clear yet.
It's also appealing, in the same court, over an Administrative Appeals Tribunal decision that upheld the government's 2016 decision to revoke the school's approved authority status, a federal education department spokesperson told AAP in a statement.
"The department is committed to ensuring all approved authorities for schools meet their legal obligations and that commonwealth funding is spent solely for the purpose of school education and for the benefit of students," the statement said.
The school's future was thrown into doubt in 2016 after the Department of Education and Training revoked about $19 million a year in funding because a review found the school was operating for profit.
It was argued that public funds were at risk of being passed to the Australian Federation of Islamic Councils because of property deals made under the school's former management.
The school is in the middle of proceedings against AFIC in the NSW Supreme Court regarding rent and ownership of property with a final judgment pending.
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