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.
You missed the sarcasm. He’s delusional to think islam will ever take one step to “cohere” with another culture.