"It's hard to comment without seeing the report, but our general proposition is Labour doesn't expand discrimination opportunities", Ms Plibersek said.
While it may be existing Commonwealth law and the law in many states, neither Tasmania nor Queensland allow schools to discriminate against students on the basis of sexuality.
Recently when the senate passed a motion demanding the report be released, Senator Mathias Cormann said it could not be made public because it was now being considered by cabinet.
A religious freedoms report that is yet to be released apparently recommends schools to reject gay students and teachers.
Independent senator Derryn Hinch will move a notice of motion in the Senate next Monday, calling for government funding to be stripped from private schools that discriminate against teachers or students on sexuality grounds.
"There is a wide variety of religious schools in Australia and.to some school communities, cultivating an environment and ethos which conforms to their religious beliefs is of paramount importance", Fairfax quoted the report as saying.
"To the extent that this can be done in the context of appropriate safeguards for the rights and mental health of the child, the panel accepts their right to select, or preference, students who uphold the religious convictions of that school community".
He also pointed out that the Ruddock Review found no evidence of religious schools banning or expelling students due to their sexuality.
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The leaked review, commissioned after last year's same-sex marriage victory to appease conservative MPs, was not expected to be released until after the byelection.
It also found that businesses should not be allowed to refuse service to customers on religious grounds because it would "unnecessarily encroach on other human rights" and "may cause significant harm to vulnerable groups", Fairfax reported.
Long-time marriage equality advocate and spokesman for campaign group Just Equal, Rodney Croome, said any school that took public money shouldn't be free to bar gay teachers or students.
"We remain deeply concerned that under a Morrison government this bill will be drafted without regard to the interests of LGBTIQ people and other minorities who now bear the brunt of religious discrimination", she said.
Alex Greenwich, an MP from Sydney and a gay rights activist, said he was concerned about the divisiveness of the report.
The panel's recommendation does not go so far as to allow schools to discriminate on the basis of race, disability, pregnancy or intersex status, and called on any state legislation allowing that to be repealed.