Home Affairs Minister Peter Dutton insists the prime minister was "dead right" to commission a review into religious freedoms, as he awaits its recommendations.
Mr Dutton believes religious schools should have the freedom to educate students in line with their faiths.
"If people are making a conscious decision to send their children to a particular school ... (there should be) the ability for that curriculum to be taught in accord with that religious belief," he told Sky News on Friday.
Having teachers who shared that religious belief was at the heart of the concerns many people shared, Mr Dutton said.
He wants discrimination exemptions, that allow schools to hire and fire gay teachers, to remain in place and for parents to be able to opt out of the Safe Schools anti-bullying program.
But asked if he would support the right for Islamic schools to teach Shariah law, the minister said: "I wouldn't support any religion preaching something which is outside of the Australian law."
The federal government is due to receive the report into religious freedoms on Friday, sparked by the debate over same-sex marriage.
Former Liberal attorney-general Philip Ruddock led a panel of experts that examined the issue after concerns were raised the legalisation of same-sex marriage could undermine freedom of religion.
The Law Council told the panel it had not seen any evidence to suggest the human right to religious freedom was not properly protected or disproportionately limited in Australia.
It warned against any changes that would "allow for the manifestation of religious belief whilst permitting forms of discrimination that are currently unlawful under Australian anti-discrimination law".
However, there was some scope to strengthen protections against discrimination and vilification on the basis of religion at a federal level.
The panel also heard from Christian groups that argued religious schools should be able to teach children the value of male-female marriage without being reported to authorities over discrimination.
As well, there should be no legal detriment to anyone, in a workplace or elsewhere, expressing the view that marriage is between a man and a woman.
The panel was initially due to report in March but was granted an extension to May 18 after receiving more than 16,000 submissions.