Crossbench senator Derryn Hinch has announced that he will present a motion to strip funding from private schools that exclude gay teachers and students.
This week, a leaked recommendation from the panel tasked with examining whether Australian law adequately protects freedom of religion supported the right of religious schools to discriminate against gay students.
The outspoken independent senator will move his motion next week as Prime Minister Scott Morrison considers his response to the report.
However, Hinch has gone on the offensive, calling for private schools that discriminate against gay students or teachers to be stripped of funding.
“I will move a notice of motion in the Senate [on] Monday calling for any private school that discriminates against a teacher or student on sexuality grounds be stripped of all government funds and charity status,” Senator Hinch wrote on Twitter.
Later, speaking on a radio station, Hinch said that it was “immoral” for schools to discriminate against students or teachers based on their sexuality.
On Thursday night, Prime Minister Scott Morrison confirmed that he was not comfortable with schools turning away LGBTQI students.
"We do not think that children should be discriminated against," Mr Morrison told Sky.
"I don't think if someone's at a school they should be kicked out because they have a different sexuality to what might be believed to be the appropriate thing by a particular religious group."
The president of the Australian Catholic Bishops Conference, Archbishop Mark Coleridge, said Catholic schools welcome staff and students from all backgrounds “who are willing to accept the declared mission and values of the school community”.
“We think all people should be considered equally for employment or enrolment. We have not sought concessions to discriminate against students or teachers based on their sexuality, gender identity or relationship status,” Coleridge said.
“Once employed or enrolled, people within a Catholic school community are expected to adhere to the school’s mission and values.”
Shadow Education Minister, Tanya Plibersek, told ABC News Breakfast that the recommendation was a “disturbing proposition”.
“It's difficult to comment without seeing the report, but our general proposition is Labor doesn't expand discrimination opportunities,” Plibersek said.
“What kind of adult wants to turn away a child, wants to reject a kid because they are gay?”
Meanwhile, Federal Opposition Leader, Bill Shorten, called for the immediate release the report, saying he couldn’t believe that Prime Minister, Scott Morrison, hadn’t rejected the “silly” proposal.
“The fact is every child is entitled to human dignity,” Shorten told reporters in Melbourne.
“We shouldn’t even be having this debate.”