The day was founded in 2009 as a reaction to the lack of LGBT recognition of transgender people, with the only national day being Transgender Day of Remembrance at the time.

Equality Tasmania spokesperson Dr Charlie Burton said the day was important as visibility increased awareness and in turn reduced stigma and discrimination.

"It's a day to acknowledge and celebrate the existence and successes of transgender and gender diverse people around the world," he said.

"We are celebrating people such as Launceston's Stephanie Reid, for her work to repeal Tasmania's law against cross-dressing in 2000."

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The Hobart City Council raised the transgender flag for the first time over the city's town hall on Monday to mark the day, with numerous landmarks around the city to also be lit up in trans colours.

Dr Burton said it was pleasing to see the level of government closest to the community embracing the transgender and gender diverse community.

"We would like all councils in the state to follow suit," he said.

"The change towards the community has been positive and I think that is evident in the many people who have chosen not have gender recorded on their child's birth certificate.

"More people are seeing gender as something that must be decided by the individual and something that can not be projected onto an individual."

With the state election called for May 1, Dr Burton said the most important thing was the gender laws were not repealed.

"The Tasmanian Law Reform Institute found no evidence of an unintended consequences but the Attorney-General [Elise Archer] hasn't ruled it out," he said.

"We would like all parties to commit to not repealing the laws and to look at implementing the recommendations handed down in the institute's report, especially for young people."

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