Despite inclusion in the "States" chapter, Section 116 does not apply to states because of changes during drafting, and they are free to establish their own religions. Although no
state has ever introduced a state church (NSW restricted religious groups during the early colonial period), the legal body corresponding to many religious organisations is established by state legislation. There have been two referendums to extend Section 116 to states, but both failed. In each case the changes were grouped with other changes and voters did not have the opportunity to expressly accept only one change. Most states permit broad exemptions to religious groups from anti-discrimination legislation; for example, the NSW act allowing same-sex couples to adopt permits religious adoption agencies to refuse them. The current situation, described as a "principle of state neutrality" rather than "separation of church and state", or even a "pluralistic theocracy" as the government cannot be neutral towards the religion of people who do not have one. On the other hand, religious groups and others have been concerned that state governments are restricting them from exercising their religion by
preventing them from criticising other groups and preventing them from refusing to do acts that they deem unconscionable according to their faith. ==See also==