People wanting to change their sex on their birth certificate will no longer be charged a fee.
The government has also established a group to help further reduce barriers to changing a registered sex through the current process.
As of yesterday, applicants wanting to change their sex on their birth certificate will no longer be charged up to $95 to do so.
The cost covered making the change through the Family Court, issuing an updated birth certificate, and couriering the new document to its owner.
A group with representatives from the transgender and intersex community, as well as medical and legal experts, has been set up to provide advice on how to make the process of changing a registered sex easier.
The group will make recommendations to Internal Affairs Minister Tracey Martin early next year.
Ms Martin said work was continuing to address issues in the Births, Deaths, Marriages and Relationships Registration Bill.
Rainbow Youth executive director Frances Arns said the cost might seem small, but cutting it would make a big difference.
"This $95 is in the context of all of the other costs that you have when you are going through trying to change your legal documents and the other support you might need throughout that process."