Victorian religious schools will be banned from sacking or refusing to hire staff based on their sexual orientation or gender identity, under new reforms proposed by the Andrews government.
Attorney-General Jaclyn Symes says the reforms will close a "hurtful gap" in Victoria's current anti-discrimination laws, which allow religious organisations and schools to sack or refuse to hire people based on their sexuality or gender if they feel it is incompatible with their beliefs.
"People shouldn't have to hide who they are to keep their job," she said in a statement on Thursday.
"These laws will strike the right balance between protecting the LGBTIQ+ community from discrimination and supporting the fundamental rights of religious bodies and schools to practise their faith."
Reforms to the Equal Opportunity Act, which will be introduced to parliament later this year, will make it unlawful for religious bodies and schools to "discriminate against an employee because of their sexual orientation, gender identity, marital status or other protected attribute".
Under the proposal, government-funded religious bodies will also be prohibited from refusing services to people based on their sexual preference or gender.
Schools and organisations will be allowed to make employment decisions based on an employee's religious beliefs where it is critical to the job, such as the hiring of a religious studies teacher.
Similar laws have been in place in Tasmania for several years.
Without the support of the opposition, the government requires the backing of three of the 11 crossbenchers in the upper house to pass legislation.
The Victorian Greens have already flagged they will support the reform.
"The world will be a better place when these reforms pass," spokesman Sam Hibbins said.
Opposition Leader Matthew Guy said he had not yet seen the legislation but agreed with the "basic premise".
"I don't think anyone should be sacked on the basis of their sexuality," he told reporters on Thursday.
The government will soon begin consultation on the reforms with LGBTIQ+, education and faith-based groups.
Equality Australia and the Independent Education Union welcomed the announcement.
"Many of our members have been subject to discrimination in the workplace, dismissed simply because of who they are or whom they love," the union's Victoria and Tasmania General Secretary Deb James said in a statement.
"These outdated laws have robbed students of skilled teachers, who also make schools inclusive and welcoming spaces for LGBTIQ+ students."
Equality Australia wants to see the government's proposed changes broadened to apply to any service provided by a faith-based organisation to the public.