I go to a catholic school. We had to do some form of compulsory religion in year 11 (Either Unit 1/2 OR *JUST* One unit) (Eg I did unit 2 religion + a semester of general math methods (a subject my school made up to cover some of the easier things in methods) ).
In year 12, they've come to the decision that since it is a catholic school (and indeed the biggest one in the state) that you should have to do religion. So they are forcing us to take some kind of religion, either continue on from your unit 1/2 studies and do 3/4 RE as one of your 5 subjects OR do an internal RE as a 6th subject.
The internal RE isnt a proper VCE unit (we had a couple internal choices: Religious Art, Community Service or Contemporary Culture Studies (religion in culture, i chose this one). So now i have 6 subjects and are somewhat disadvantaged compared to someone not doing 6 subjects or being made to do RE like my mate who goes to a private school.
Last year they had a lot of problems with people not showing up to internal RE classes like this, so they got wise. They're making us sign a contract promising to come or otherwise we might not be allowed to attend graduation, the formal, year 12 breakfast, ect.
[Edit: I probably made it sound a bit more pessimistic than i was intending, hopefully it is a bludge subject. Also note it is only one semester in length i think so it leave free periods for the end of year exams, doesnt help science students with mid year exams though..]