"I'm not comfortable with discrimination against people's religious faith, against their gender, against their sexuality, against their race", Scott Morrison told 3AW radio on Thursday.
"To the extent that some jurisdictions do not now allow religious schools to discriminate against students on the basis of sexual orientation, gender identity and gender characteristics, the panel sees no need to introduce such provisions".
Mr Morrison said the proposals - which have not yet been debated by cabinet - would be considered "carefully and respectfully".
The Australian has also gotten hold sections of the confidential report and says the recommendations surrounding how religious based schools can treat LGBTI students actually restrict how schools can discriminate against gay, bisexual and transgender students and teachers.
Outspoken independent senator Derryn Hinch will move a motion next week calling for private schools to be stripped of public funding if they exercise their right to exclude gay students or teachers.
Religious schools could be given a weapon to discriminate against LGBTI, according to a new report.
When asked if he thought religious schools should be able to turn away students on the basis of sexual orientation, Morrison demurred twice, saying "that is the existing law".
'To the extent that this can be done in the context of appropriate safeguards for the rights and mental health of the child, the panel accepts their right to select, or preference, students who uphold the religious convictions of that school community'.
Djokovic powers into third round in Shanghai Masters
Three days on and the 30-year-old continues to be under the weather, but just about did enough to see off Gasquet 7-5, 7-6 (9/7). World number one Rafael Nadal , beaten by Federer in last year's final of the Masters 1000 showpiece, is absent with injury.
"Personally, I would be opposed to any new measures that impose forms of discrimination on the basis of gender or sexual orientation, or anything else for that matter", Mr Sharma, a former ambassador to Israel, said.
The Ruddock review was commissioned after the 2017 national same-sex marriage vote and handed to the government several months ago, but is yet to be released.
The leaked contents of a review into religious freedom prompted fears that the Government may bolster anti-LGBT rules in the Sex Discrimination Act.
It also found that businesses should not be allowed to refuse service to customers on religious grounds because it would "unnecessarily encroach on other human rights" and "may cause significant harm to vulnerable groups", Fairfax reported.
"Everyone of faith feels the pressure ... it's a constant pressure from the left of society on people of faith", he said.
Gay rights activists have slammed the proposal as a shameful assault on equality.
"We do not think that children should be discriminated against", Mr Morrison told Sky.