The head of a federal inquiry into multiculturalism hopes to push back against the notion that all Muslims in Australia want to impose Sharia law.

Labor's Maria Vamvakinou describes this as a myth and a "fault line" in the community, along with the perception that Muslims do not want to integrate with mainstream Australia.

She also wants migrants to be described by their ethnic origin as opposed to faith, to overcome the trend of grouping all migrants from Afghanistan or Iraq as Muslims.

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