Labor has broken away from working with the federal government to protect gay students in religious schools, arguing the coalition is dragging its feet and the matter must be resolved.
The major parties had been working together to remove exemptions in the Sex Discrimination Act that allow faith-based schools to discriminate against LGBTI students.
But negotiations have broken down over the government's insistence new provisions be introduced that would allow religious schools to enforce rules such as compelling gay students to attend church services.