Australian Prime Minister Anthony Albanese said on Friday his centre-left government would consider the recommendations of an independent report on Islamophobia, which suggests anti-Muslim sentiment in the country had hit "unprecedented levels".

An independent report released on Friday by the government's special envoy to combat Islamophobia said the normalisation of Islamophobia has become widespread in Australia to the extent that many incidents were not even getting reported.

"The reality is that Islamophobia in Australia has been persistent, at times ignored and other times denied, but never fully addressed," Aftab Malik said during a media briefing in Sydney, joined by Albanese.

"We have seen public abuse, graffiti...we have seen Muslim women and children targeted, not for what they have done, but for who they are and what they wear."

The 60-page report has proposed 54 recommendations to the government, including setting up an inquiry to check discrimination based on religion, and the impact of Islamophobia on social cohesion and democracy.

Malik was appointed last year to recommend steps to prevent anti-Muslim hatred after Australia saw a surge in antisemitic and Islamophobia incidents since Israel retaliated against an attack by militant Palestinian group Hamas almost two years ago.

"The 7 October 2023 attacks in Israel mark the most recent turning point, where Islamophobia has since reached unprecedented levels," the report said.

Since the conflict began, the Islamophobia Register has recorded a 150% increase in hate incidents by November 2024.

Albanese said targeting Australians based on their religious beliefs was an attack on the country's core values, and that he would "carefully consider" the report's recommendations.

"Australians should be able to feel safe at home in any community ... we must stamp out the hate, fear and prejudice that drives Islamophobia and division in our society," he said.

Albanese had also appointed an antisemitism envoy and its report released in July had recommended cutting funding for universities that fail to protect Jewish students and screening visa applicants and non-citizens for extremist views.