This chapter discusses how SRE/RI fosters and enhances multiculturalism in Australia. Research has shown that within a multicultural society educating about religious traditions other than students’ own is important but, in order to do, this the students need to have a deep understanding of their own background and religious traditions (Jackson and Fujiwara 2007). We define the term “multiculturalism”, explaining the difference between thick and thin multiculturalism; provide a brief background to the development of multicultural policy in Australia; and discuss what is written about it in terms of religious education in current Australian policy. We then discuss the growing religious plurality and diversity of religious belief and practice in Australia, especially since the turn of the twenty-first century and outline the advantages of maintaining SRE/RI in terms of strengthening Australia’s multicultural fabric through meeting the needs of the religiously diverse population, as well as offering an educational milieu to counter religious fundamentalism and extremism. These important findings are discussed in this chapter as are our research findings from 58 interviews with directors, teachers and graduates either individually or in focus groups of the six main faith groups: Christianity (18), Islam (12), Buddhism (9), Hinduism (7), Judaism (7) and Baha’i (5). We stress that, at the same time, a more critical and reflective approach is needed in terms of the pedagogy of SRE/RI, as will be discussed in a later chapter, and introduce Schweitzer’s (2007) concept of Cooperative Religious Education, which involves a combination of SRE with GRE (General Religious Education/Worldviews Education). In fact, reflective SRE classes multiculturalises schools, whilst GRE contributes to intercultural competence (Dervin and Gross 2016) by creating a better knowledge of different religious beliefs. This chapter argues that GRE (Worldviews Education) has the potential to make an important contribution to the area of intercultural competence.