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The Australian Christian Lobby has rejected a push by gay advocates to remove certain religious exemptions from anti-discrimination laws.
The Government is in the process of overhauling anti-discrimination legislation in an effort to simplify the definition of what behaviour is unacceptable.
However it has made clear that existing exemptions will continue to apply to religious organisations, except aged care providers that receive Commonwealth funding.
New South Wales independent MP Alex Greenwich, who has been a long-term campaigner for gay and lesbian rights, is urging the Prime Minister to go further, especially if taxpayer money is involved.
"There's a number of concerns here, and what this comes down to is that if public funds are going to an entity to provide a public service, they should not be allowed to discriminate against a key part of the community," Mr Greenwich told ABC News.
"I hope the Government seizes the opportunity of this review... to make some real change to help those who are affected by discrimination on a daily basis.
"Anti-discrimination laws should be about protecting those affected by discrimination, not protecting those who conduct the discrimination themselves."
But the head of the Australian Christian Lobby, Jim Wallace, says it is important to maintain the right of religious organisations to only employ people who reflect their values and philosophies.
And he has played down the idea that it is a widespread problem.
"I'm not aware of any Christian organisation that has refused to hire anyone (based on their sexuality), and I've looked," Mr Wallace told reporters in Canberra.
"I'm not aware of any school that has expelled anyone... for homosexuality.
"So, I think this is a beat-up in that it's a problem that doesn't exist."
Mr Wallace says Prime Minister Julia Gillard has reassured religious leaders who are concerned about the potential ramifications of anti-discrimination law changes.
"The Prime Minister... has said that in that process, she had no intention of limiting religious freedom," he said.
Religious organisations are exempt from discrimination law in relation to employment under the Age and Sex Discrimination acts.
The Government says those exemptions apply where the conduct conforms to the doctrines of the religion or is necessary to avoid offending the religious sensitivities of adherents.
Topics: federal-government, discrimination, religion-and-beliefs, christianity, gays-and-lesbians, australia
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