The panel found that when it came to employment in religious schools,“undoubtedly the most difficult issue” was exceptions for sexual orientation and gender identity and marital status in light of the passage of marriage equality.

It recommended the Commonwealth law be amended to allow this discrimination,but only if the school had a publicly available policy.

“For the panel,the key to the maintenance of existing exceptions (to discrimination law) is clarity and transparency…”.

The report also recommends the states ensure existing same-sex teachers are not discriminated against if they get married to a same-sex partner.

The panel also found that blasphemy laws are out of step with a modern,tolerant,multicultural society and should be abolished,and said there was an absence of any concrete indications that funding to faith-based charities was under immediate threat.

In his statement Wednesday,Mr Morrison said the religious freedom review"is an independent report to government,not a report from government"and was the product of community consultation.