The breakfast presenter breached standards of decency with last year's on-air comments and has been counselled by management.
"Australians are generally tolerant of irreverent humour and critical discussion about religion," Ms O'Loughlin said. "But they would not expect a host of a broadcast program to derisively criticise people's intelligence because of their religious beliefs.
A spokeswoman for ARN, the owner of radio stations KIIS, WSFM and Gold, said the broadcaster accepted the findings. "Australia's Christian and Muslim faith leaders accepted Kyle's apology, which was also published in a public joint statement."
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