Large businesses would not be able to restrict their employees from expressing their religious beliefs outside of work, unless the business can prove this will cause "unjustifiable financial hardship," under the federal government's proposed new religious discrimination laws.

Attorney-General Christian Porter said under the draft bill, Rugby Australia would have to prove its social media rules - and subsequent sacking of Israel Folau - were in order to protect its brand, noting that Mr Folau would argue the condition he could not speak about his religious beliefs outside of work was "unreasonable".

Attorney-General Christian Porter has released draft religious freedom legislation. Credit:Ben Rushton

Mr Porter said "empathy and understanding" were necessary when it came to religion in Australia.

"We cannot live and let others live without some real appreciation of what it is that makes our neighbours' life meaningful. It should not be underestimated how important religion is to the composition and success of the life of Australian nation itself," Mr Porter said in a speech in Sydney on Thursday.