From today, Tasmanians are now able to choose whether or not their gender is included on their birth certificate.
State parliament passed laws in April to make Tasmania the nation's first jurisdiction in which gender on a birth certificate is optional.
The laws also removed the requirement for transgender people to have sexual reassignment surgery in order to have a new gender recognised.
Transforming Tasmania's Martine Delaney says the state is leading the world.
"Tasmania has again as it has in so many other areas, including human rights, to set a benchmark for he rest of the country. It's also world-leading as well. I think Malta is the only jurisdiction that is as inclusive in their birth certificate legislation as Tasmania," she said.
The Tasmanian Government will monitor the roll out of the state's birth certificate laws. Premier Will Hodgman says legal experts' warnings of a potential minefield were ignored.
"The Greens and Labor were not prepared to consider those consequences, we did say very strongly that we anticipated circumstances that might rise from the legislation and indeed have committed to undertake or consult in a review," he said.
The state government had opposed the changes, but the legislation passed the lower house on the casting vote of Liberal Speaker Sue Hickey, who crossed the floor.
Transgender and gender diverse advocates marked the laws coming into effect with cupcakes and champagne at the Registry of Births, Deaths and Marriages in Hobart.