This man is delusional.
No, he's not. Here is what he said:
"Modern Islam needs to cohere with the Australian way of life, our values and institutions. In so far as it doesn't, it needs reform."
The statement is true, and the question moves the debate among the still somnambulant masses. Obviously the implied next part of the statement is: "If Islam can't reform, it can have no place in Australia."
Or anywhere else civilized people live.