Ms Bell spearheaded an agreement struck in December between a group of moderate Liberal MPs and Prime Minister Scott Morrison to fast-track the repeal of section 38(3) of theSex Discrimination Actalongside a vote on the religious discrimination bill. The section gives church schools a legal exemption to discriminate against LGBTIQ students on the basis of sexual orientation and gender identity,including by expelling them,if it is done “in good faith in order to avoid injury to the religious susceptibilities of adherents” of the religion.

The delicate nature of the balance of power in federal parliament means Liberal and National MPs prepared to abstain or cross the floor can significantly influence whether the government brings legislation on for a vote.

But Attorney General Michaelia Cashlater cast doubt on the deal after the vote was deferred and the bill was instead referred to two parliamentary committees,which will report their findings on Friday. The federal government has already indicated its willingness to scrap the exemption but said it would only consider the issue after the proposed religious discrimination laws had been in place for 12 months.

The bill will make it unlawful to discriminate against somebody because of their religious belief or activity in certain areas of public life,including work,education and access to goods,services and accommodation. The bill’s controversial “statement of belief” provision will provide legal protection to written or spoken comments providing they are made in good faith,are in line with a religious doctrine of their religion and are not malicious,threatening,harassing or vilifying. The provision will override existing federal and state anti-discrimination laws.

While the move by the Brisbane college is likely permissible under current federal laws,it has drawn a warning from the Queensland Human Rights Commission that forcing existing students to comply with the controversial contract would probably amount to unlawful discrimination under state laws.

The college’s enrolment contracts,issued to families on Friday,states that it is consistent with the school’s ethos that it will “only enrol the student on the basis of the gender that corresponds to their biological sex” and reserves the school’s “right to exclude a student from the college who no longer adheres to the College’s doctrinal precepts”.

Liam Elphick,an associate lecturer of law at Monash University,said while the contract was probably unlawful under Queensland laws,it would need to be tested in court if the federal bill was passed.

“With students,it’s not a direct override. But the Religious Discrimination Bill could override Queensland state laws that say schools can’t discriminate in this way. We won’t know until it goes to court,” Mr Elphick said.

He suggested the college had provided a contemporary example of a school using religion to “actually discriminate on the basis of someone being gay or trans”.

Mr Sharma said the contract sent to families by Citipointe Christian College case was “distressing and divisive” and underscored the need for Parliament to act.

“It shows only too clearly why we must accelerate the timetable for prohibiting discrimination against students and teachers on the basis of their sexual orientation or gender identity,” Mr Sharma said.

“The relevant provisions of the Sex Discrimination Act are grossly outdated and are offensive to community sentiment and values. It is important that such issues be dealt with as part of any consideration of religious discrimination legislation,and not as separate matters.”

North Sydney MP Trent Zimmerman said the action taken by Citipointe Christian College demonstrated there were schools prepared to “put the welfare of students at risk”,and he would consider the findings of the parliamentary inquiries before finalising his position on the bill.

“I continue to believe this is the opportunity to rectify the potential for discrimination against teaching staff and students,” Mr Zimmerman said.

“Policies like the one that this case has highlighted are the type you would expect to find in the 19th century,not the 21st.”