The definition of a "religious body" that will be able to hire and fire staff on religious grounds will be expanded under the Morrison government's proposed religious discrimination laws, while conscientious objection provisions for health practitioners will be narrowed.

Prime Minister Scott Morrison and Attorney-General Christian Porter released a second draft of their religious discrimination bill on Tuesday, following about 6000 written submissions and an avalanche of criticism from church, business and community groups about its first effort.

Mr Morrison said Australians held diverse beliefs and this was "a key part of who we are as a country".

"This is a bill for all Australians," he told reporters in Sydney. "Australia is a country of respect and of tolerance."