The Government has given draft religious discrimination legislation to the Opposition, but is hiding it from the public in a bid to prevent a divisive culture war.

In a review, the Australian Law Reform Commission recommended scrapping laws which allow religious schools to discriminate against staff on the basis of their faith.

Tony Burke said the Government's long-held position was religious schools should be able to have full choice to employ people who share their faith. 

"Once you have employed somebody, then all the normal rights against discrimination should be held by that worker," he told ABC Radio on Monday.

"It goes to the firing issue. That would be an example of discrimination if it was done for a reason for one of those protected categories.

"Parents are sending their children to religious schools for that purpose and it's completely reasonable in the government's view that you are able to employ on that basis."

A report released by Equality Australia on Monday said LGBTQI discrimination is "endemic" in religious schools and organisations across the country.

It found almost 1 in 10 of Australia's largest faith-based service providers publicly discriminate against LGBTQI people, while almost 4 in 10 are silent in their positions on LGBTQI inclusion.

Introducing the report, former High Court justice Michael Kirby described the religious exemptions in anti-discrimination laws as "neither principled nor just".

"There is increasing understanding, and broad acceptance in Australia, that the past overly broad religious exemptions go beyond what is essential and sometimes diminish the enjoyment of the dignity and rights of others," he said.

National Catholic Education Commission executive director Jacinta Collins rejected Equality Australia's assertion faith-based schools were seeking to discriminate against staff or students, saying there was “little evidence” to support these claims. 

“Catholic schools can maintain their religious character without engaging in unjust discrimination, as we have done for over 200 years,” she said. 

“The current exemptions are designed to ensure that discrimination legislation doesn’t impinge on religious freedom and enables faith-based schools to continue to build a community of faith by preferencing the employment of individuals who share and support the ethos and mission of our schools…

"If individuals do not support our ethos, they are able to choose another school for enrolment or employment," Collins said.

"This is what a free, pluralistic society is about."

Burke said it wasn't uncommon for negotiations being discussed in "good faith" to be kept away from the media glare. 

"That's a reasonable a reasonable thing to do," he said.

"If there's a way of dealing with this constructively with the opposition, then that's a better option for the whole of Australia."

He said the nation should be a place where people aren't targeted for their religious faith or a lack of one.

Prime Minister Anthony Albanese has said the Government would only proceed with bipartisan support.

"Australians don't want to see the culture wars and division," he said. 

"I want this to be an opportunity for unity going forward, that's why we've provided the legislation to the Opposition." 

Twenty-four faith leaders have addressed their concerns over the report in an open letter.

The report's recommendations will prevent an "overwhelming majority" of faith-based schools from preferring people who share and "authentically live out their faith," leaders said.

"It will therefore extinguish their distinct and authentic character," they said.

The Opposition has criticised the Government's handling of the issue even though many leaders including Deputy Opposition Leader Sussan Ley have not yet seen the legislation.

"I'm really disappointed in the way that Anthony Albanese has handled this issue, he has failed the character test, his approach is completely lacking in transparency," Ley told reporters in Canberra. 

"Concerns have been raised by the Christian, Catholic and Islamic schools and those should be addressed."

Former prime minister Scott Morrison tried to push his own religious discrimination bill in February 2022. 

But five Liberal moderates crossed the floor for an amendment that stripped the right of schools to discriminate against students on the basis of gender identity, sexual orientation or their relationship status.

The laws were shelved and have not been revisited since.

Equality Australia has called on the Federal Government to adopt the recommendations of the Australian Law Reform Commission’s anti-discrimination inquiry. 

“This is the blueprint for reform and we call on the federal government to adopt the recommendations in full, and pass legislation as soon as possible,” said advocacy group’s Legal Director Ghassan Kassisieh said.  

“Labor committed to these reforms before coming to power but discrimination against LGBTQ+ students and staff is happening in religious schools across the country because of gaps in Australian laws that makes it lawful…” 

with APP