The most commonly reported hotspots for abuse remain shopping centres, construction sites and streets.
The most common form of abuse is verbal intimidation.
But, the report authors say fewer bystanders witnessing the incidents are intervening.
Sherene Hassan from the Islamic Museum of Australia says:
"I think the most disturbing thing that I found was the decline in bystander reporting and it's absolutely essential that individuals who witness some form of Islamophobia as a third party, for them to do all they can do report that particular incident to the authorities. To be vigilant, to take down registration plate numbers. It's an absolutely essential aspect of trying to deal with this very, very serious issue."
Islamophobia is also felt by elected MPs. Greens senator Mehreen Faruqi served in the New South Wales state parliament from 2013 to 2018.
But she says the abuse increased dramatically when she entered the federal parliament in 2019.
"When I entered the senate it really intensified so much that often my staff would walk me back to my car at night each day. Every contribution we make is minimised and challenged with a simple 'go back to where you came from, we don't need you here, you're not even from here'. This isn't just the far-right extremists I can tell you. It's the politicians as well, who dog-whistle and who stand on the sideline when the dog-whistling is happening."