During the last twelve months, the Muslim Community Reference Group (MCRG) and its Sub-Groups formed recommendations and proposals to the Australian Government that aim to create a more inclusive Australia in which people are less likely to be isolated and marginalised and possibly attracted to rigid and antisocial thinking that can lead to destructive activity. More than 40 projects were proposed by the MCRG and its Sub-Groups for consideration in the development and implementation of the National Action Plan to Build on Social Cohesion, Harmony and Security (the National Action Plan). The MCRG considers that the recommendations and proposals made in the April 2006 MCRG Interim Report which were acknowledged and turned into action in the National Action Plan will go a long way to addressing many of the anxieties felt not only in Australia’s Muslim community, but also among members of the wider community about the potential for unruly and/or terrorist activity in Australia.The social isolation facing many Australian Muslims, particularly the young, both at school and in the community, will be challenged by promoting interfaith and intercultural cooperation through school education, redesigned school curricula, sport, mentoring and volunteering. Research into education and employment will examine how Australia’s education and employment systems encourage integration and where they fall short. Muslim youth will be assisted into the labour market with improved access to employment service providers and government services.