Mr Hulls will protect the right of hundreds of church-run organisations - including schools, hospitals and welfare services - to refuse to employ or provide services to people who they believe may undermine their beliefs.
Under the deal, Mr Hulls will allow church groups to continue discriminating on the grounds of sex, sexuality, marital and parental status and gender identity. But they will be unable to discriminate on the basis of race, disability, age, physical features, political beliefs or activity, or breastfeeding.
Leading discrimination law expert Professor Margaret Thornton said it was a win for fundamentalist religious groups. ''In terms of a person's private life … their sexual preference or marital status really has nothing to do with their ability to perform a job. Being able to discriminate on marital status is particularly absurd. It is really out of date. It really amounts to the policing of women because the focus is on single mothers, not on men.''