Gay conversion therapy could be outlawed in Australia if Bill Shorten wins next month's election, with Labor promising to impose a nation-wide ban on the "dangerous and discredited" practice.

Mr Shorten will also announce a dedicated LGBTI human rights commissioner, $10 million annually in HIV funding and the scrapping of discriminatory clauses in federal laws such as the Fair Work Act, which currently fails to protect trans and intersex employees against adverse action.

A federal Labor government would ban gay conversion therapy and introduce a dedicated LGBTI human rights commissioner. Andrew Meares

Labor's pledge to "end the practice of so-called LGBTIQ conversion therapy" paves the way for a potential showdown with some faith-based groups who are likely to view it as another attack on religious freedom.

But it could also prove politically sensitive for Prime Minister Scott Morrison, a Pentecostal devotee who said last year gay conversion therapy was "not an issue" for him to debate.

Gay conversion therapy is an umbrella term given to any attempt to change someone's sexual orientation or gender identity, and takes many forms, including counselling, prayers and exorcisms, and online courses.

Victoria recently became the first state to announce plans for a legislated ban, after a state-wide inquiry by its Health Complaints Commissioner found "overwhelming evidence" that it does serious and long-term harm to those who receive it.

Federal Labor's announcement is the first time a federal party vying for government has made such a commitment, although much of the detail is yet to be developed.

Policy documents to be released on Tuesday show that a Shorten government would work with survivor groups and the states and territories to develop strategies to end so-called conversion practices - including a nation-wide ban.

It is understood that Labor supports criminalising some forms of conversion therapy, but is aware of the need to strike a balance between enforcement and education.

Banning gay conversion would require parliament to pass legislation, and approval from the Council of Australian Governments.

It could also face a backlash from the Australian Christian Lobby, whose chief executive Martyn Iles previously described the prospect of laws against conversion therapy as "a dangerous policy for parents, counsellors and even medical practitioners with a faith identity".

Although the notion that homosexuality can be "cured" has been discredited globally, an Age/Sydney Morning Herald investigation revealed last year that its ideology still exists in Australia.

Recent research by La Trobe University and the Human Rights Law Centre found at least 10 operations in Australia and New Zealand advertising the provision of conversion practices, but warned that criminalisation alone would merely force proponents further underground.

As part of a broader LGBTI package to be announced today, Labor will also recommit to removing exemptions allowing religious schools to discriminate against students and staff on the grounds of their sexuality.

Equality Australia chief executive Anna Brown welcomed the proposed ban.

"It's fantastic to see federal Labor commit to playing a leadership role in tackling the lasting harm caused by these insidious practices in faith communities across the nation," she said.