Faith-based service providers and equality advocates have welcomed a government decision to delay new religious discrimination laws, saying the legislation has “overreached” its initial intention. On Saturday, the prime minister, Scott Morrison, announced the government needed more time to get the laws right, promising to release a revised draft of the Religious Discrimination Act before the end the year to take into account issues that have been raised during the consultation process.

Religious groups have slammed the proposed laws as not doing enough to protect religious freedoms, while the former high court justice, Michael Kirby, has warned that the “unbalanced” law will see a rise in both religious intolerance and anti-religious hostility. Human rights and LGBTI groups, employer bodies and state anti-discrimination commissions are also all opposed to the bill that the attorney general, Christian Porter, released in August.

Quinn Pawson, the chief executive of Vincent Care Victoria, said the group was among many faith-based service providers that was pleased the government had delayed the introduction of the bill. “We hope they use this time to listen to the wide range of people from many faiths and beyond who have genuine concerns that legislation in its current form only represents a small proportion of Australians,” Pawson said. “We ask the government to listen and draft a religious discrimination legislation that is consistent with all other anti-discrimination law by protecting people of faith, not giving them permission to discriminate.”

Anna Brown, the chief executive of Equality Australia, said that without revision the religious discrimination bill would “try to divide our communities”. “We welcome faith organisations joining us to call for balanced and equal laws that protect from discrimination without winding back existing rights for LGBTIQ people and others.”