In the early 1960’s as Muslim populations grew particularly in Sydney, Brisbane, Melbourne, Adelaide and Perth, associations were set up reflecting ethnic identity within a new environment. As these local associations and Islamic societies grew in number, the Muslims felt the need to unite as a faith community and to have their voices heard at the national level.

In 1964, Muslim leaders decided on an organisational structure that would represent the needs and aspirations of the newly arrived Muslims in Australia. The leaders of the time brought some of these associations together to form a two-tier Australian Federation of Islamic Societies (AFIS).

By 1976 the community had grown considerably and the leaders decided to set up a three-tier structure of local Islamic societies at grass roots level, State Islamic Councils as state umbrella bodies and a federal body to be named the Australian Federation of Islamic Councils (AFIC), now known as Muslims Australia. This structure provides for an inclusive organization that represent the diverse Muslim communities of the time and the future.