Homosexual activity between men was decriminalized in New South Wales on 11 May 1984 when the Crimes (Amendment) Act 1984 removed all parts of the Crimes Act 1900 that criminalized consensual sex between men.

The Crimes (Amendment) Act 1984 was given assent on 31 May 1984 by NSW Governor Sir James Rowland, but the sections legalising homosexual activity came into effect 20 days earlier.

Same-sex marriage has been legal in Australia since 9 December 2017. The legislation to allow same-sex marriage, the Marriage Amendment (Definition and Religious Freedoms) Act 2017, passed the Australian Parliament on 7 December 2017 and received royal assent from the Governor-General the following day.

In February 2024, the Cumberland City Council passed a ban on drag story time events in the city.

In May, there was a ban on books about same-sex parenting in children’s libraries in Cumberland too but it was overturned two weeks later. However, the ban on drag story time remains in place.

The right to change one's gender on official documents in New South Wales was established under the Transgender (Anti-Discrimination and Other Acts Amendment) Act 1996, which came into effect on 28 June 1996.

The law allowed for a person to apply to change their legal gender only if they have undergone sexual reassignment surgery, which was defined by the act as a "surgical procedure involving the alteration of a person’s reproductive organs for the purpose of assisting a person to be considered to be a member of the opposite sex, or to correct or eliminate ambiguities relating to the sex of the person."

The law also stated that the applicant must be over the age of 18 and unmarried. If the person was under 18, the act required that a parent or guardian apply on their behalf.

Australian youth outside of Queensland can begin accessing puberty blockers at the age of 10, full HRT is not typically prescribed until 16 and GCS is often not done until 18. However, nobody can access irreversible treatment until 15.

For Oestrogen or Testosterone two independent child and adolescent psychiatrists must do a standardised assessment of psychological development as well as a formal assessment of the child’s gender identification and capacity to understand the proposed treatment. A paediatric endocrinologist establishes the child’s pubertal stage, excludes disorders and discusses with the child and parents the effects and risks of puberty suppression.

For Puberty blockers a young person requires a multidisciplinary team consisting of a paediatrician, two mental health professionals (one must be a psychiatrist), and a fertility expert, to agree treatment is in the child’s best interests. It is then necessary to make an application to the Family Court for authorisation of treatment.

In 2011, New South Wales recognised intersex people under federal Australian law.

Non-binary identities are not yet legally recognized in New South Wales.

In 1996, transgender people were added to New South Wales' anti-discrimination act as a protected characteristic.

In 1996, transgender people were added to New South Wales' anti-discrimination act as a protected characteristic against employment discrimination.

In 1996, transgender people were added to New South Wales' anti-discrimination act as a protected characteristic against housing discrimination.

In 2010, New South Wales legalised same-sex adoption.

No territory or state besides the Australian Capital Territory has banned intersex infant surgery.

In 2010, Australia lifted its ban on transgender people serving in the military.

In Australia sexually active LGBT people are unable to donate blood unless they abstain from sex for three months. Since 2021, the deferral period within Australia was reduced from 1 year to 3 months without PrEP.

In June 2023, the Therapeutic Goods Administration (TGA) approved a submission from Australian Red Cross Lifeblood calling to remove most sexual activity ineligibility criteria for plasma donors.

On March 22nd, 2024, New South Wales’ Parliament passed a bill that bans conversion therapy for sexual orientation and gender identity. The bill was assented to on April 3rd, 2024, and became law twelve months later, on April 3rd, 2025.

In 2003, New South Wales passed the Crimes Amendment Act which equalised the age of consent of homosexual relations to heterosexual ones.