Coalition MPs and senators have agreed to changes to the federal government's contentious religious discrimination bill, protecting gay students from expulsion but not transgender children.
Amendments passed by the party room on Tuesday means the Sex Discrimination Act would be changed to ban faith schools from excluding students because of their sexuality.
But such protections wouldn't be extended to transgender students, with the Australian Law Reform Commission to be asked to consider broader changes to the controversial clause.
A government spokesperson said Prime Minister Scott Morrison told the party room the bill was not introducing anything not promised by the government at the 2019 election.
“My faith entails us to love kids, not reject them” Mr Morrison is said to have told the meeting.
Mr Morrison also said issues raised around the bill were not “forever lost”, and noted support for stronger religious protections, including from ethnic and religious communities including Hindus, Sikhs, Christians, Jews, Muslims and others.
But some Liberal MPs are said to have continued to raise concerns about aspects of the laws, despite it gaining the broad support of the party room.
This included one MP stating their concerns about not dealing with the issues around gender identity at this point in time.
It’s understood Liberal MP Trent Zimmerman also said he would continue to reserve his right not to vote for the bill.
Liberal MP Bridget Archer has also threatened to cross the floor, over concerns the bill could infringe on existing anti-discrimination protections.
LGBTIQ+ advocates - including Olympian Ian Thorpe - have also warned the laws would amount to “” through its statement of belief clause and provisions allowing employers to discriminate when hiring staff to people who adopt the same faith.
Mr Morrison earlier told reporters he was honouring an election promise with the bill before parliament, which would not overturn the existing legal ability to expel transgender students.
"This bill does not seek to endorse that arrangement. That's an existing law,” he said.
“What we're dealing with today are not those matters," he said, adding that further work would be done by the Australian Law Reform Commission.
The prime minister is pressuring moderate MPs who have indicated they cannot support the bill, indicating that the Coalition’s path to the election will be harder if they do not unite on the issue.
Labor is yet to finalise its position on the bill, with both parties wanting to keep voters of faith on side just months out from an election.
Opposition leader Anthony Albanese told reporters he supported "the idea of course that you shouldn't be discriminated against on the basis of your faith."
“It shouldn't be beyond the capacity of the parliament to deal with this in a way that builds consensus,” he told reporters.
“Everyone should be protected.”
Other amendments seen by SBS News show attempts to clarify what schools’ written policies need to have before they can act using the laws.
It also attempts to clarify how the bill will address statements of belief and employment practice provisions but does not respond to concerns they will override state laws.
Employers running religious-based institutions, including schools and hospitals, would be given greater powers to discriminate, under the bill.
