Iftar refers to the fast-breaking meal during Ramadan.
The prime minister hosted the Ramadan feast at Kirribilli House on Thursday night.
Mr Turnbull described Ramadan - the period in which Muslims fast from food and water between dawn and sunset - as a special time of forgiveness, reflection and spiritual renewal.
He also recognized the other faith leaders present to share in the spirit of Ramadan.
"By breaking bread across religions and by bringing diverse people together, we are embodying Islam's emphasis on human diversity," he said reciting a Quranic verse.
Source: SBS