Ameer Ali heads an advisory panel set up to improve communications between the government and the Muslim community.
"The times are changing and with the change of times, you also have to reinterpret the Koran," Ali told The Australian. "Because if you believe that it's a book for all the times and all the nations, then that book must be yielding new meanings."
Ali pointed to passages that say good Muslims must be kind to slaves and said that a literal interpretation would mean that Muslims must then endorse slavery.
The former president of the Australian Federation of Islamic Councils, Ali has also taken on the government. He recently said that Australia should remove Hezbollah from a list of terrorist organizations.
Ali said that Muslims should remember that Mohammed was also a human being and thus imperfect.