The second exposure draft of the Liberals' Religious Discrimination legislation has made already bad legislation even worse.

"The Liberals have massively widened the scope of the legislation, which will increase the number of organisations that will be able to discriminate," Greens Justice spokesperson Senator Nick McKim said.

"The legislation maintains its undermining of state-based protections against discrimination, including Tasmania's nation-leading laws."

"This whole process has always been a smokescreen for bigotry."

A Religious Discrimination Act should not be used to undermine or override state based anti-discrimination laws, the Australian Greens say, following the release of the government’s response to the Ruddock Review.

Greens Justice spokesperson Senator Nick McKim said: “Religious freedom cannot be viewed in isolation, nor should it be used as a political weapon in an act of vengeance for the marriage equality vote.”