This post by Tracey Spicer sums up the current issues - problems with religious education in Victorian public schools, resistance to teaching secular ethics classes in NSW public schools, federal funding of chaplains in public schools in Australia more generally.
Public education should be secular. Students should be taught about religion, but from an academic viewpoint, not a devotional/doctrinal one. If parents are going to teach that to their children, it should not be via the state. At a minimum, children (and parents) need to be offered an alternative if the state is going to let in local ministers once a week to preach their "flock" - that much should not even be controversial.
H/T Scott Hedges.