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Sport Australia boss Kate Palmer says Rugby Australia's strong stance against Israel Folau sends a message to all sports that discrimination won't be tolerated.

Sport Australia boss Kate Palmer has commended Rugby Australia's strong stance against discrimination and vilification and urged all sports to follow suit.

Palmer says RA's plan to tear up Israel Folau's multi-million-dollar contract following his repeated attacks on homosexuality is a big step to ensuring safer sporting environments for all Australians.

"Discrimination is unacceptable and cannot be tolerated in any sport or recreation environment, at whatever level," she said.

"Everyone is entitled to their own views but expressing divisive and discriminatory beliefs is harmful to sport and the broader Australian community.

"When people of influence use their public profiles to demean and discriminate, we cannot allow such divisive comments to go unchecked.

"As a sporting industry, we must stand together and call out against any form of discrimination whether it is based on sexuality, race, gender or disability.

"Sport Australia's message is that sport and physical activity is to be enjoyed by everyone. We stand for inclusivity, diversity and sport for all.

"I commend Rugby Australia, they have shown they are willing to place their sport's values above all else."