The Victorian government has confirmed it is investigating funding awarded to a Dandenong-based Islamic community organisation after reports it held a mourning service for Iran’s supreme leader, Ayatollah Ali Khamenei.
ABC reports that Victoria’s Department of Premier and Cabinet is examining whether a $149,380 grant given to the Taha Humanity Association of Victoria was used appropriately, following scrutiny in state parliament and the federal government’s decision to cancel separate funding for the group.
It is reported that the grant, listed in the department’s 2024-25 annual report, was provided as part of a 2022 state election commitment by the Allan Labor government.
Federal Minister for Multicultural Affairs Anne Aly told ABC the Commonwealth had decided not to proceed with the funding after concerns were raised about social cohesion. She said governments routinely fund community and religious organisations but expect their activities to align with the rule of law and public expectations.
“Due to social cohesion concerns I’ve decided to not go ahead with a grant for the Taha Humanity Association. We are not proceeding with this election commitment.”
It is reported that the association, which operates a community centre in Dandenong and serves Melbourne’s Shia Ithna Asheri Muslim community, has received about $215,000 in Victorian government grants since 2014.
During Question Time on Thursday, Minister for Multicultural Affairs Ingrid Stitt confirmed the state government had begun reviewing the funding after questions from the Victorian Liberals and Nationals.
Shadow Minister for Multicultural and Multifaith Affairs Evan Mulholland said Victorians were frustrated that taxpayer money could be directed to organisations he claimed sympathised with authoritarian regimes. He argued public funds should not go to groups associated with mourning Iran’s supreme leader Ali Khamenei, describing such actions as “sickening” and saying they should be condemned across the political spectrum.
“Mourning the late Ayatollah Ali Khamenei is sickening. It should be condemned by all sides of politics.”
A Victorian government spokesperson said that the investigation would assess whether the registered non-profit organisation had complied with the conditions attached to the grant.
The spokesperson added that a newly introduced “social cohesion values commitment” would require organisations receiving public funding to demonstrate they contribute to community harmony, warning that failing to meet the standards could affect future grant applications.
“We have recently introduced the social cohesion values commitment which will ensure those organisations who receive government funding contribute to community harmony – failure to observe it will impact any future applications.”
The scrutiny follows a separate decision by the federal government to cancel a $670,000 election commitment that had been pledged to upgrade the association’s community centre and support programs, including English language classes.
Opposition figures at both state and federal levels have questioned the original grant decisions. Federal Liberal senator James Paterson, speaking to the ABC’s Afternoon Briefing, said the funding raised concerns about the government’s due diligence and called for an explanation from Labor MP Julian Hill, who had announced the federal grant during the last election campaign.
“He didn’t warn the government that the views of the people at this community centre may be incompatible with the government’s objectives for social cohesion.”
It is further reported that Labor frontbencher Ed Husic defended Hill, saying it was unfair to hold him responsible for developments that occurred after the commitment was made, noting that grant announcements during election campaigns are often based on proposals submitted at the time.
“I don’t recall seeing him [Hill] with a crystal ball ever. He was not to know what events would transpire and how people would respond.”
The controversy emerged after claims the association had held a mourning service following the reported death of Khamenei, the long-time leader of Iran’s Islamic Republic. The Iranian leader has been widely criticised by Western governments over human rights abuses and Iran’s support for Islamist militant groups abroad.
The Taha Humanity Association of Victoria says recent media coverage and political commentary have misrepresented a commemorative mourning service held at its Dandenong premises and has called on media outlets and parliamentarians to correct what it describes as inaccurate claims.
In a media release issued on Facebook, the association said the gathering was a religious observance and not a political event, stressing it has no affiliation with any foreign government, political party or movement.
The organisation added that its activities are focused on community service, including food drives, cross-cultural volunteering and free funeral services for people in need.
The association said it believed the federal government’s decision to cancel a previously announced $670,000 grant had been made based on what it called an “unchecked narrative” without consultation with the organisation or its leadership.
It also warned that public commentary linking the group to extremism was causing distress within the community, particularly among Afghan-Australian and Hazara members who it said had fled persecution and violence before settling in Australia.
The association has asked media outlets and public officials to retract inaccurate statements, consult community leaders before acting on unverified claims, and recognise that Shia mourning practices are longstanding religious traditions rather than political acts.
In its statement, the group said it opposed all forms of violence and extremism and supported peaceful coexistence in Australia, adding that it remained committed to contributing positively to the broader community.
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