Fr MacLeod-Miller received the generous donation after speaking out against the Religious Discrimination Bill and its lack of protections for trans students.

The priest said the bill itself, and the harmful debate surrounding it, made him 'ashamed' to be part of a religious organisation.

On Thursday the bill was shelved by the government after Liberal MPs crossed the floor to support a successful amendment to the Sex Discrimination Act to protect transgender children from being expelled from religious schools.

"It just seems that Australia is at a crossroads we can either be a tolerate, accepting and affirming community or we can be like Salem," Father MacLeod-Miller said.

"People need to decide whether they allow equal opportunities for all kids, if there's not equal opportunity for all kids we're in trouble as far as our values are concerned. I think our Australian values are on the line here."

IN OTHER NEWS:

Fr MacLeod-Miller has been a long term advocate for LGBTIQA rights, being a vocal supporter of marriage equality.

He said the anonymous donation was affirming of his decision to be vocal despite belonging to a conservative religious organisation.

"I'm amazed, I'm amazed on a number of fronts I'm really encouraged that people feel so strongly and motivated about the welfare of younger people and I also feel that it makes me feel heartened knowing people have noticed that we're trying to make a difference," he said.

The donation will fund further scholarships for students through the St Matthew's Musical Fund. The scholarships will be open to all and Fr MacLeod-Miller said they would be as inclusive as possible.