Both sides of politics have backed new laws to ban discrimination on the grounds of religion, but plans to protect gay students from being turned away from religious schools have been delayed beyond the next federal election.

The Morrison government unveiled its long-awaited response to Philip Ruddock's religious freedom review on Thursday, pledging to create a Religious Discrimination Act and install a Freedom of Religion Commissioner.

Both sides of politics support the principle of a Religious Discrimination Act. Credit:Fairfax Media

But Prime Minister Scott Morrison has dumped plans to strip religious schools of their right to expel gay, lesbian and transgender students, instead referring the issue - along with that of LGBTI teachers - to a review by the Australian Law Reform Commission, which will not be completed until the second half of 2019.

In a frenzied day of announcements, Mr Morrison also established a new review into how refugees integrate into Australia, including their job prospects and financial independence. The snap review will be led by former top public servant Peter Shergold, and will report in February.