A lesbian couple's experiences with a Catholic school in western NSW have sparked a call to amend anti-discrimination laws, reports the ABC.
A senior law lecturer at the Australian National University, Wayne Morgan, says religious exemptions mean that the school has not acted illegally.
However, Mr Morgan says the exemptions make a mockery of the law.
"The very broad exemptions that do exist for religious entities in NSW need to be amended," he said.
"Particularly when those religious entities are receiving public money to offer a service to the public. On policy grounds, there is just no basis to be providing exemptions in those circumstances."
Mr Morgan says he hopes the Sacred Heart case leads to a review of the Act.