A group called the Christian Schools Alliance distributed 5000 flyers through five Christian schools and one Islamic school this week, claiming the sexuality and gender identity conversion ban legislation was flawed and could put parents in prison for teaching a faith-based sexual ethic.

Chief Minister Andrew Barr said the claims were complete rubbish.

"They have an obligation to tell the truth and they're outrageously lying," Mr Barr said.

"I think people are smart enough to see through that sort of blatant propaganda, and the only people who would respond to that, I think, probably already made up their mind on the issues."

The Canberra Liberals have vowed to amend the legislation to specifically protect parents and teachers.

"The definition of "conversion practices" used in the Labor-Greens legislation is so broad and unclear that it risks criminalising ordinary Canberrans," a Liberal spokesman said.

"Parents love their children and want what is best for them. They do their best to guide them as they navigate the challenges of growing up. Parents need support in this important responsibility, not the threat of government sanctions."

Australian Association of Christian Schools executive officer Vanessa Cheng said concerns raised by Christian schools had not been taken on board by the government and that was why the letters were distributed.

"It's certainly not a lie. It's not propaganda. It's based on the legal advice we've received, which we believe is sound," Mrs Cheng said.

READ MORE:

Meanwhile, families at Catholic schools received letters from director of Catholic Education for Canberra Goulburn Archdiocese, Ross Fox, warning Labor would cut funding to their schools if re-elected.

"From everything we know, the Canberra Liberals funding plan will put downward pressure on school fees - helping to keep Catholic schools affordable.

"ACT Labor's plan puts pressure on school fees to rise," Mr Fox said.

The Liberals have pledged to increase funding to Catholic schools by $16.8 million over four years, bringing funding of Catholic schools to 25 per cent of funding provided to government schools by 2025.

Education Minister Yvette Berry said Labor would not match this commitment.

"The ACT government funds all our schools in the ACT based on the Gonski means model and that's about making sure that every school is funded appropriately and fairly based on need," she said.

"So to suggest that we're cutting funding to any of our schools is incorrect."

She said non-government schools would be able to access loans for sustainability measures and the future of education equity fund.