A new office for Multicultural Affairs is to be established within the federal department of Home Affairs in a move the Albanese government says will mean multiculturalism and diversity are more valued.

The office will bring together existing functions in the Home Affairs portfolio and bypass the need for a Machinery of Government change.

It will oversee Australia’s settlement and language services, including the Adult Migrant English Program (AMEP) and Translating and Interpreting Service (TIS National).

The office will also focus on modernising community grant projects and set a national approach to multicultural policy-making.

The Albanese government has elevated the Minister for Multicultural Affairs, Anne Aly, to cabinet for the first time in Australia’s history.

“Multiculturalism is not just about or for a section of our society, each and every one of us belongs to an Australia that has been enriched by our 65,000 years of First Nations culture and the successive stories, traditions and histories of those who have come across the seas,” Dr Aly said.

The government has said the establishment of a federal Office for Multicultural Affairs is a significant step, recognising the importance of not just celebrating multiculturalism but valuing diversity.

Home Affairs Minister Tony Burke said: “Modern Australia and multicultural Australia are the same thing”.

“This Office provides a central hub for government work and makes sure every Australian feels welcomed and at home,” he said.

The Victorian Government has already moved to revamp its multicultural arrangements.

It has committed to restarting the state’s Interfaith Dialogue as part of a package of initiatives to strengthen multiculturalism.

The Interfaith Dialogue has stalled in recent times as a result of community tensions over the conflict in Gaza.

Speaking recently at the first of a series of forums for multicultural community leaders, Premier Jacinta Allen announced the plan as well as explaining the rationale behind a recently announced Multicultural Review.

“It’s important we restart the Interfaith Dialogue. We have seen recently that our social cohesion has come under pressure, and we need to address that,” Premier Allen said.

She said the Multicultural Review, led by former Victorian Multicultural Commission chair George Lekakis, would look at what the government could do to support multicultural and multifaith communities.

“As Victoria becomes more and more diverse, we need to make sure our processes and policies are reaching as many people as needed,” the Premier said.

“We want multicultural communities and people from all walks of life to be part of the conversation and to have a seat at the table. We want them to be listened to and heard.

“We want multicultural communities to be part of the solution to this issue around cohesion,” she said.

Premier Allen said multiculturalism was one of Victoria’s greatest assets.

“We now have 290 languages and dialects in the state which make Victoria a special place,” she said.

“That’s why we have given George Lekakis the important work of reviewing our institutions, policies and procedures across the community. And community voices are a strong focus of the review,” Premier Allen told the forum, hosted by the VMC.

She also outlined her government’s response to tackle racial vilification.

“Hate speech has been made a serious crime as part of our anti-racism strategy. Our message is that we are a harmonious community,” Premier Allen said.