The state government has been accused of dragging its feet on discrimination in religious schools after Premier Mark McGowan said the Law Reform Commission would conduct an inquiry into an exemption in the Equal Opportunities Act rather than just abolishing it.

Under the exemption, discrimination in schools is permitted if it adheres to the "doctrine, tenets, beliefs or teachings" of a religion.

The state government has been accused of dragging its feet on anti-discrimination law reform. Credit:Peter Harrington

This means religious schools can discriminate against staff who are unmarried parents, living together out of wedlock or who are LGBTI.

Greens MP Alison Xamon, who introduced a private member's bill to abolish the religious schools exemption in June, said the McGowan Labor Government "talked the talk" on rights for LGBTI people but failed on practical law reform.