Larger businesses, including sporting bodies, will find it harder to sack people in situations such as the Israel Folau case under a new Religious Discrimination Act proposed by the Morrison government.

A draft bill released Thursday stipulates that if a large business - defined by having annual revenue of at least $50 million - dismisses someone for expressing a religious view which breaches a condition of employment, the employer must demonstrate that keeping the worker would cause the business "unjustifiable financial hardship''.