Dear Kelpie,
So sorry to hear about this. It is not easy to go through. Don't take this personally and let it get you down. Often times this is a sign of a dysfunctional workplace.
I don't know about the laws down under, but in the U.S. this statement would get them into hot water with the Equal Employment Opportunities Commission:
I have spoken to them and they are not interested in keeping me on. They will pay for counselling tho... I have thought of taken them for unfair dismissal (they also made a comment that I was too young for the position I have been holding for over a year.) A lawyer has my details.
This is a stupid comment for an employer to make in America because it clearly violates 1. age discrimination laws and possibly 2. Americans with Disabilities Act (recognition of the need for counseling) and also possibly 3. religious discrimination laws.
Unfortunately what most employers do, rather than work with the employee to resolve the issue and get things back to normal, is to dismiss the worker and wash their hands of the problem. Often in America they do this on some other pretext, so that discrimination is hard to prove.
Hopefully your next employer will be a more progressive company.
Good luck!
Tammy