Is this in our schools yet?, page-8

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    Religious exemptions, which involves allowing discrimination on the basis of sexuality, gender identity, marital status and so on where the discrimination has a religious motivation. For example, the Sex Discrimination Act currently prohibits discrimination on the basis of sex, sexuality, gender identity and marital status, but also includes an exemption that allows religious schools to discriminate against students and teachers.So, if a non-religious private school expels a student for being gay that would contravene the Sex Discrimination Act.
    But if a religious school did the same thing for religious reasons, that would not contravene the Sex Discrimination Act.Some states and territories already ban religious schools from discriminating against students and teachers for these kinds of reasons. So if an Islamic religious school in Victoria expels a student for being gay, that would not breach federal law as it stands but it would breach Victorian law. The practical result is that the school can’t expel the student for being gay. A second proposal is to modify the religious exemptions in the Sex Discrimination Act.
 
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