Australian Federation of Islamic Councils (AFIC) president Rateb Jneid says that anti-Islam sentiment in the country is growing.
"Australia has a history of isolating groups from the mainstream and there is no question that it is Muslims that are currently the focus of this practice," Dr Jneid told AAP.
"There has been a clear trajectory of increasing negative stereotyping and discrimination of Muslims in this country for nearly two decades."
Dr Jneid said the current climate left Muslims in Australia feeling ostracised and fearful.
He said Australian society needed to recognise its own struggles with discrimination before anything could be done to reverse the situation.
"Until such time as we are prepared to acknowledge the racism that underpinned the very creation of this country we will not be able to properly address the ongoing issues faced by other minority groups including Muslims," he said.
A 2017 report into Islamophobia in Australia by Charles Sturt University concluded there was a "disturbing amount" of the practice at institutional and personal levels in Australia.
The report also features statistics from the Islamophobia Register which showed external events such as "global and national terrorist attacks, sieges, legislation targeting Australian Muslims and protests" coincided with an increase in reports of incidents.