An overhaul of Tasmania's Anti-Discrimination Act will strengthen bullying laws and give religious schools the power to prioritise enrolments.

The State Government will next week table legislation allowing faith-based schools to choose religious students over those who do not share their belief.

The changes were first recommended in 2009.

Patricia Hindmarsh from the Catholic Education Office says it is a sensible move.

"Catholic schools were built first and foremost to accommodate Catholic families," she said.

"We welcome all families but if it came to the point where there's a contest for a place it's our duty to give that place to the Catholic family.

"Our grandparents and our parents built these schools."

Attorney-General Brian Wightman says the change will apply only at the point of admission and cannot be used to remove a child already enrolled at a school.

"At this stage I don't think it will be used a lot by schools," he said.

Tasmania has more than 60 faith-based schools; 37 of those are Catholic.

They will need the approval of the Anti-Discrimination Commissioner before prioritising students.

Commissioner Robin Banks says it will be up to each school to determine what makes a believer, and to prove their enrolment policies do not discriminate on other grounds.

"I think it's an appropriate balance, it serves the purpose for which it was sought and it maintains the integrity of the Act," she said.

The move is part of a wider overhaul of the Anti-Discrimination Act.

Anti-bullying laws will be broadened, meaning it will be illegal to humiliate or insult someone because of their race, sexual orientation, or political or religious beliefs.

The changes are expected to win parliamentary approval.