Prime Minister Scott Morrison will personally introduce his watered-down religious discrimination bill into the federal parliament, even though some of his moderate MPs still "question the need" for the legislation.

The bill was promised by the Coalition government in the wake of the same-sex marriage debate in 2017 to provide extra protection for people of faith. It was a pledge that was taken to the last election.

The legislation, which was finally released publicly on Tuesday afternoon, aims to ensure Australians who make "statements of belief" get extra protection from existing state-based discrimination laws.

It states that moderate religious beliefs are not discriminatory so long as they are not made in a malicious way and "that a reasonable person" would not think they "would threaten, intimidate, harass or vilify a person or group".

The bill also ensures institutions run by religious organisations, like schools, will be able to prioritise or give preference to the employment of people from the same faith.

"For example, it is not discrimination for a religious primary school to require all of its staff and students to practice that religion, if such a requirement is necessary to avoid injury to the religious susceptibilities of people of that religion," the bill states.

Similarly, institutions will get extra protections to ensure they are able to cater to their faith in a particular way.

"For example, a residential aged care facility or hospital does not discriminate … by providing services to meet the needs (including dietary, cultural and religious needs) of a minority religious group, such as a Jewish or Greek Orthodox residential aged care home," the bill explains.

However, institutions must ensure their conduct is in accordance with a "publicly available policy" that clearly explains how religious views will be enforced.

Moderate Liberals remain concerned with discrimination bill

Despite receiving assurances from ministers, several moderate Liberal backbenchers raised concerns about the legislation in a party room meeting on Tuesday.

Queensland backbencher Warren Entsch said he "still questions the need for it".

"I respect that we took this to an election," the Liberal MP told the ABC.

"But there are some elements I remain concerned about."

The legislation is expected to be voted on in the lower house next week and sent to the Senate, where it will likely be subject to a committee inquiry.

It could then be put to a final vote early next year.

"We need to give this a high level of transparency and test the veracity of some of the commitments [the government] has made," Mr Entsch said.

Religious lobby groups and some church leaders have been pushing hard for the parliament to pass the bill before the next federal election.

But some critics, including some LGBT groups, fear it could lead to people in same-sex relationships being discriminated against and override state-based discrimination protections. 

"Because Tasmania's Anti-Discrimination [Act] is the best in Australia, it is the one most targeted under this extreme and unconscionable federal bill," said Equality Tasmania spokesperson Rodney Croome. 

Equality Australia CEO Anna Brown warned the proposed law could actually legalise discrimination.

"When a waiter says to a queer woman of faith in a cafe that her relationship is an abomination against God, well these type of statements — which could arguably constitute discrimination today and constitute a statement of belief — would be protected under the law with this bill," Ms Brown said.

Conservative politicians say laws are a 'shield, not a sword'

Some of the most controversial proposals have been axed from the final bill.

The so-called "Folau" clause, named after former Wallaby Israel Folau, was sacked by Rugby Australia over social media comments, has been cut.

It would have limited the control employers could have over statements of belief.

Objection protections for doctors and other medical professionals have also been scrapped, meaning that Australians cannot be refused treatment for religious reasons.

The Prime Minister told MPs on Tuesday that the bill was important to him and several conservative politicians insist the legislation is meant to be a "shield, not a sword" for faith-based institutions.

It also confirms a new religious discrimination commissioner will be created to work within the existing Human Rights Commission.

"This bill strikes a balance," said Tasmanian Liberal Senator Eric Abetz.

"I would have liked a few more things in it but some of my colleagues would have liked a few less."

The federal opposition was briefed on the legislation last week but has repeatedly said it would wait to see the full details of the bill before making its position clear.

"Labor looks forward to the long-overdue introduction of the government's Religious Discrimination Bill," Shadow Attorney-General Mark Dreyfus said in a statement.

"Labor believes all Australians should be able to go about their lives free from discrimination — and all Australians should have an opportunity to see the government's bill, which will only happen once it is actually introduced."