The Libertarian in me agrees whole-heartedly with your comments, Dan!
Schools should be free to choose their own dogma, no matter how stupid and ignorant. But not if you're using public money to do so. I'm pretty sure Australia doesn't have a Constitution with the idea of the separation of Church and State, but I don't believe in forcing anyone to anything against their beliefs.
I would not force a gay-owned bakery to make a wedding cake for an evangelical couple who hates gays and vise-versa.
But as you so eloquently pointed out, public money should not be spent on bigotry.
Why the Gay Community Will Destroy the Christian Church