In a win for Melbourne father Sagardeep Singh Arora and his son Sidhak, the Victorian Civil and Administrative Tribunal ruled that Melton Christian School breached the Equal Opportunity Act.

The decision, which was handed down on Tuesday, could have implications for the way schools set their uniform policies.

It also paves the way for Sidhak to attend the school of his choice.

"It is not reasonable to accept enrolment applications from students from non-Christian faiths only on condition that they do not look like they practise a non-Christian religion," VCAT member Julie Grainger said.

Mr Arora had hoped that his son would start prep at school this year, but the enrolment hit a roadblock when principal David Gleeson said Sidhak would have to comply with the school's uniform policy.

It states that boys must have short hair, and can't wear head coverings related to a non-Christian faith.

He argued that the school discriminated against his son, by not allowing him to wear the patka and have uncut hair – essential parts of his religion.

Mr Arora said he was "very pleased" with the decision and his son still wanted to attend the school "because his cousins went there".

"We are very pleased that religious freedom... is alive in Victoria," he said in a statement also signed by United Sikhs, Victorian Sikh Gurduaras Council, Sikh Interfaith Council of Victoria and the Supreme Sikh Council of Australia.

The college was relying on an exemption in the Equal Opportunity Act, Section 42, which lets schools set and enforce "reasonable" standards of dress in consultation with the community.

But Ms Grainger said this exemption did not arise because the school didn't take into account the broad views of the school community when it set its uniform policy.

"I consider that MCC's uniform policy, in so far as it prohibits head gear of a non-Christian faith, could be described as 'openly discriminatory'," she said.

She said the school could have made a reasonable adjustment by letting the young Sikh boy wear a patka in the school uniform colours.

Trish Low, Herbert Smith Freehills' national leader of equal opportunity and training, who acted for Mr Arora on a pro-bono basis, said schools would now be re-examining their uniform policies to ensure they were lawful.

The College said it had taken into account the views of the school community –but it had only surveyed school council members and teachers, and VCAT deemed that inadequate.

"It gives more guidance as to what they have to do to set reasonable dress codes," Ms Low said. "The school community is broader than a principal and school council; it also comprises of parents, teachers and students."

Independent Schools Victoria chief executive Michelle Green said it would take time to examine the "detailed and complex" finding to assess the implications.

More than half the school's students do not identify as Christian and it has an open enrolment policy.

The school argued that its uniform policy created a "level playing field" and promoted equality through its sameness.

Mr Gleeson said the school had always thought that it was acting lawfully, and respected the VCAT findings.

"Our school takes seriously the protection, dignity, rights and safety of children, so we were, and are concerned that this case has involved a young child in public controversy," he said.

He said the school would work with Sidhak and his family to find a "constructive way forward".

"Our current students come from a very wide range of cultural and religious backgrounds, and we are devoted to all our students, we are passionate about their education," he said.

The Victorian Equal Opportunity and Human Rights Commission, which intervened in the matter to help the tribunal interpret the law, said it was an important test case.

"VCAT's decision shows that all schools must ensure their uniform policies are not discriminatory," Commissioner Kristen Hilton said.

"Treating all people the same does not result in giving everyone equal opportunity. The decision makes it clear that there is a stark difference between headwear that connects a person to their religion and a sports cap or fashion accessory."

VCAT ordered that the family and the school attend a conference to resolve the issues.