The Catholic church is free to continue distributing a booklet opposing same-sex marriage after an anti-discrimination case collapsed, with a complainant citing the church's refusal to modify offensive and insulting messages in the brochure.
Hobart woman Martine Delaney said conciliation facilitated by Tasmania's Anti-Discrimination Commissioner had failed and progressing to the next step - a tribunal hearing - wasn't an option.
In an email sent to the commissioner on Thursday, Ms Delaney withdrew her complaint against the Australian Catholic Bishops Conference and Hobart's Catholic Archbishop Julian Porteous.
"My primary reason is the tribunal process is a very long and drawn out process and during that time the message of this booklet is going to continue to be spread," she told AAP.
"My intention was to force (the church) to understand the gravity of their actions, but they refuse to do so and the damage has been done."
The booklet - Don't Mess With Marriage - has been distributed across Australia and focuses on a perceived disadvantage for children living with same-sex couples, and argues messing with marriage equates to "messing with kids".
Ms Delaney claimed the contents marginalised lesbian, gay, bisexual, transgender and intersex Australians in an offensive and insulting way.
A statement from the Hobart archdiocese acknowledged the voluntary withdrawal of the complaint.
"This decision by the commissioner raises a number of issues which remained unanswered, in particular the ability of the church to freely express its view on marriage," the statement read.
Archbishop Porteous has previously argued the importance of hearing all viewpoints on the issue in the lead-up to a planned plebiscite on same-sex marriage.
Ms Delaney's complaint, lodged in November, attracted criticism including that it was an attack on free speech.
The national Institute of Public Affairs said Thursday's outcome is a victory for free speech and freedom of religion.
"The laws that allowed for this complaint to be made should be repealed," institute policy director Simon Breheny said.
"Respect for religious liberty and plurality means allowing religious organisations to have the right to express themselves without fear of being dragged in front of a tribunal."
The Australian Catholic Bishops Conference said the church participated in good faith in the conciliation process, while upholding the institution's beliefs.
"The aim was to assist the Catholic community in understanding the teaching of the Catholic church, at a time when debate on this matter was and continues to be widespread," the conference said in defence of the booklet.
As part of the conciliation process, Ms Delaney offered an edited version of the booklet which presented the contents as a subjective view rather than fact.
Her edition was rejected by the church which instead suggested issuing a co-signed statement outlining that the church means no offence by the booklet, and Ms Delaney regrets if people saw her action as stifling free speech.
"They are not interested in altering their behaviour at all," Ms Delaney said.
"The church is quite happy to make these statements and the church is quite happy to accept the collateral damage from making some quite ugly statements about same-sex marriage."
