Prime Minister Julia Gillard last year ruled out the prospect of Sharia law becoming part of the nation's justice system, saying the only law in the country was Australian law.
In the annual Hal Wootten lecture on Thursday night, Sir Gerard said there had been suggestions there was room for a "system in which at least some parts of Islamic Sharia law might operate as part of Australian law".
He said: "That suggestion seems to me to be misconceived."
Muslims were free to adhere to the "beliefs, customs and practices prescribed by Sharia law", the former chief justice said, but only as long as they did not conflict with Australian law.
"That freedom must be respected and protected but that does not mean that Islamic Sharia should have the force of law."
All Australian citizens, irrespective of their religion, had common values that formed the basis of Australian law, he said.
"Our citizens, including the Islamic community, share the basic Australian values of tolerance, egalitarianism, and individual freedom in thought and action," he said.
24 Aug 2012