For the past couple of years, the Australian government – prodded by the financial sector – has been pondering the regulatory and taxation changes that would be necessary to create an Asia-Pacific Islamic financing powerhouse.

However, with the change of government last month and continuing concern over the effects of easing Chinese growth on Australia's commodities-led economy, there is a danger that Islamic finance has been consigned to a back burner.

Australia's stable political and social environment – and its highly advanced financial market – have long created interest among Islamic finance professionals in building the country as a hub to serve not only the domestic Muslim population but also the large and less financially sophisticated markets nearby, such as Indonesia and Malaysia.

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