"We don't need just a religious discrimination act, we need an act that positively establishes the positive right of religious freedom," he said.

Patrick Parkinson, a professor of law at the University of Queensland and spokesman for Christian legal think tank Freedom for Faith said Christian leaders hope the federal government will "move away from the language of exemptions" in its proposed act.

He said a more positive framing of rights was needed to help people of faith maintain their identity while taking "a lot of heat out of the argument" over religious freedom.

"We don't want to be perceived as wanting a right to discriminate," Mr Parkinson said.

"Our fundamental concern is the right to select staff who are appropriate to the mission of the organisation and not to discriminate against others.

"We want an affirmation in Commonwealth law of the rights of a faith-based organisation, be it a religious school or some other organisation, to employ staff who adhere to the faith."

A spokeswoman for the Catholic Archdiocese of Sydney said the federal government had not yet consulted it on any proposed legislation and that Australians of faith were concerned about "increasing attempts" to restrict their ability to practise their faith in public.

"It remains unclear whether and to what extent their freedom to do so is protected in law, and so having this freedom enshrined in legislation would be welcome," she said.

"Additionally, laws must recognise that freedom of religion and belief belongs to organisations as well as individuals, because it is through associating with one another that believers often live out their faith."

The spokeswoman said the Catholic church expected to be consulted on any proposed legislation before it was tabled in Parliament.

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"We look forward to consulting with the government to ensure that any legislative changes protect or strengthen our ability to conduct these good works continues unimpeded," she said.

The Uniting Church in Australia says a "legislative balancing of competing rights and values in the area of religious freedom and other rights" was needed.

"Any provisions for religious freedom should be driven by an overriding focus on enabling and maintaining a society which encourages mutual respect and is free from discrimination," it says.

"Every person is equal before the law and any permission given to religious organisations that allows them to discriminate on the basis of religious belief must be carefully balanced against the rights of people to be free from discrimination."

A spokesman for federal Attorney-General Christian Porter declined to comment on whether the proposed religious discrimination bill would include exemptions, saying it was "still being finalised and will be released in due course towards (or at) introduction".