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Both sides of politics support the principle of a Religious Discrimination Act.Credit:Fairfax Media

But Prime Minister Scott Morrison has dumped plans to strip religious schools of their right to expel gay,lesbian and transgender students,instead referring the issue - along with that of LGBTI teachers - to a review by the Australian Law Reform Commission,which will not be completed until the second half of 2019.

In a frenzied day of announcements,Mr Morrison also established a new review into how refugees integrate into Australia,including their job prospects and financial independence. The snap review will be led by former top public servant Peter Shergold,and will report in February.

The Religious Discrimination Act,which was recommended in Mr Ruddock's review,would replicate laws that currently protect people from discrimination on the grounds of their sex,race and other attributes.

Labor offered in-principle support for such an act but wants to see the details of the legislation. Attorney-General Christian Porter said a bill was"well advanced"and Mr Morrison indicated he wanted to legislate before the election.

However,with only seven parliamentary sitting days scheduled before the April 2 budget,it remains unlikely the law will pass before an election is called. Labor is also reserving the right to refer any proposed legislation to a Senate committee.

Opposition Leader Bill Shorten said he did not want religion to be an election issue and it was not a subject raised with him by voters regularly."Nonetheless I accept for some people it is a very important matter and it is a principle which the Labor Party supports,"he said.

Mr Morrison pivoted his religious freedom message toward Australia's multicultural communities,noting the high proportion of newly-arrived migrants who adhere to a faith.

"If you support a multicultural Australia,you'll be a supporter of religious freedoms,"he said."You'll understand that religious faith is synonymous with so many different ethnic cultures in Australia."

Mr Porter noted the Religious Discrimination Act would include caveats - for example,a Muslim woman could not claim it was discriminatory for a magistrate to require her to remove a facial covering in court.

The Law Council of Australia and LGBTI advocates strongly criticised the decision to refer the issue of discrimination against gay students and teachers to the Australian Law Reform Commission.

Mr Morrison had already pledged to change the law by the end of this year,acknowledging it was out of step with public expectations. However,he proposed a bill which would give schools the power to enact rules that involve"indirect discrimination". Labor refused to back the bill and negotiations broke down.

Mr Porter indicated the ALRC will be given a wide brief to look at ways to harmonise anti-discrimination law across the states and territories. Currently,some states grant religious schools greater power than others to discriminate against students and teachers.

In a decision that immediately irked some Coalition MPs,the government opted to create a new Freedom of Religion Commissioner within the Australian Human Rights Commission. Mr Ruddock said this was"not necessary"as the work was already being done by the $350,000-a-year Human Rights Commissioner,and people needed to understand the importance and equality of"all"human rights,not just religious freedom.

Mr Porter said the government believed taking the issue"seriously"warranted a separate commissioner,whose role was"a logical connection to the commitment to actually legislating in this area".

Mr Shorten condemned the government for sitting on Mr Ruddock's report since May. The contents were leaked toThe Sydney Morning Herald andThe Agein October. On Thursday,Mr Morrison said he could not be held responsible for the delay under his predecessor,Malcolm Turnbull.

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