“I believe this view is shared across the Parliament and we should use the next fortnight to ensure this matter is addressed,” he said.

“To this end,I have asked the Attorney General to prepare amendments and consult with the opposition.

“Our government does not support expulsion of students from religious non-state schools on the basis of their sexuality. I also know that this view is widely shared by religious schools and communities across the country.”

The new position came after Mr Morrison appeared to back the exemption on Wednesday,saying it was the existing law,and then clarified on Thursday that he did not support the discrimination.

The official policy to amend the law came after the Prime Minister consulted cabinet ministers as well as the Liberal candidate for Wentworth,Dave Sharma,who is at risk of a backlash over the issue in the October 20 byelection.

With both major parties preparing for the resumption of Parliament on Monday,the government statement was followed soon after by a letter from Mr Shorten offering to amend the law. It is not clear whether either side knew of the other’s plan.

Mr Shorten said the public outcry over the issue made it clear that the exemptions in the current law were out of step with the beliefs of most Australians.

“These exemptions are anachronistic and are a denial of the dignity of children at any time,” he wrote to Mr Morrison.

“Indeed,the response from many religious educational institutions has made clear that such exemptions are not used,and are not in line with their beliefs. It is Labor’s view that they should be removed.”

The fine print is yet to be decided. Section 38 of the Sex Discrimination Act gives religious schools an exemption from the law “in the provision of education” so long as this is in accordance with the tenets of the religion. It does not mention students.

The religious freedom review chaired by former attorney-general Philip Ruddock calls for this to be amended in a way that keeps the exemption but puts new conditions on its use – including that a religious school issue a public policy and has regard to the “best interests of the child” in any decision.

Both major parties now reject that finding and propose separate changes to the act to scale back or remove the power completely.

Mr Morrison has been unhappy at Fairfax Media’s reports on the Ruddock review,believing that the recommendations would have strengthened the protections for students from discrimination.

Fairfax Media revealed the review’s key findings on Wednesday and reported they would “guarantee” the right to turn away gay students. The reporting said the findings would “enshrine” the right to discriminate but at no point said the findings would extend or widen these powers.

In his statement,Mr Morrison complained of “numerous misrepresentations” of the review’s conclusions and blames this for causing anxiety among parents.

Mr Shorten told Fairfax Media earlier on Friday that he was “amazed” the government would not release the report.

“I’m disappointed it took the current Prime Minister 48 hours to confirm that he didn’t want to extend discrimination against kids who are gay,” Mr Shorten said.

“You don’t need a focus group or a cabinet meeting to work out that’s a bad idea.”

The government’s response to the Ruddock review’s other findings is expected by the end of the year amid divisions over whether to create a new Religious Discrimination Act to protect people of faith.

Mr Shorten also played down the need for any action at all when there were more urgent priorities including climate change,energy bills and wages.

“I get that some Christians feel put upon,that they feel their belief and their faith causes them some pressure from elsewhere,” he said in an interview.

“But fundamentally,if I was this government,I wouldn’t expect my effort in the remaining 26 or 30 weeks of the government’s life to be spent on this question – because I think it’s divisive.

“This is a country that respects people of all faiths. I’m just not convinced that this is the big issue which the current prime minister and the right wing of the Liberal Party say it is.”