The Morrison government has agreed to laws that prevent the expulsion of gay students in return for greater discrimination protections for religious Australians.
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The Sex Discrimination Act is set to be changed to prevent discrimination against school students on the basis of gender identity or sexual orientation.
Prime Minister Scott Morrison had been under intense pressure to protect LGBTIQ+ students after introducing his religious discrimination bill to parliament.
Debate started on the controversial religious discrimination bill on the final parliamentary sitting day for 2021.
The bill aims to shield people making statements about their religious beliefs from existing discrimination laws, and allow religious schools and organisations to hire according to faith.
The draft laws sparked concern it would green light discrimination against vulnerable groups including people who are same-sex attracted and gender diverse.
Shadow attorney-general Mark Dreyfus told parliament the prime minister had promised in 2017 to work with Labor and the crossbench on the bill in the "spirit of bipartisanship" but had not honoured his commitment.
He said it was important for parliament to get the bill right so the rights of some did not infringe on those of others.
Deputy Prime Minister Barnaby Joyce said the bill was a belated step to ensure faith remained "unshackled" by the state.
He said the right to faith must be protected to protect democracy itself.
Two parliamentary committees, one looking at legal and constitutional issues and another at human rights, will examine the bill.
They are both due to report back by February 4, just days before parliament is due to resume for 2022.
Labor has indicated it supports protecting religious people from discrimination, but is withholding its final position until after the inquiries.
Moderate Liberal MPs secured a commitment to change the Sex Discrimination Act.
As it stands now, the act allows religious schools to discriminate on the basis of factors including sexuality, gender identity "in good faith in order to avoid injury to the religious susceptibilities of adherents of that religion or creed".
Christian Schools Australia opposes the change it labels a "shady backroom deal".
"Simply removing that provision would impact what we could teach at Christian schools and other faith-based schools and stop us from imposing reasonable standards of behaviour on students," spokesman Mark Spencer told AAP.
Australian Associated Press
