Premier Ted Baillieu has quashed a Muslim organisation's call for taxpayers to pay for the expansion of Islamic schools and halal food outlets into mainstream suburbs.

In a submission to a federal inquiry into multiculturalism, the Australian Federation of Islamic Councils said Muslims were forced to live in enclaves near Islamic schools, mosques and halal food outlets.

"The Government should invest in expanding services like halal and kosher meat and food outlets as well as faith-based schools," it said.

Read the complete original version of this item...