Another Islamic school is having its taxpayer funding cut off after a review uncovered serious financial irregularities.
The Islamic College of South Australia had fought Education Minister Simon Birmingham's decision in February to withdrawn $4 million in annual funding.
However the Adelaide school, with classes from kindergarten to year 12, has lost that battle, joining Muslim schools in Canberra and western Sydney on the financial outer with the Turnbull Government.
Senator Birmingham said the inner-city school from his home state had failed to comply with financial and accountability standards.
'It is disappointing that after the number of chances this school has been given and the constructive work of the department, the school has still failed to meet the reasonable standards and expectations placed on them,' he said on Thursday.
'This decision has not been taken lightly. However, the department was left with no choice.'
The minister says there has been a constant turnover of board members at the school since 2015.
There were also reports the latest principal had been sacked after the board rejected a proposed takeover by the Perth-based Australian Islamic College.