Lesbian activist Jessica Hoyle said that during a December 2021 visit to Target, she was approached and called a disparaging term by a Target staff member, who had overheard her discussion with two other women about how toilets and changerooms in the state are becoming mixed-gender.

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"We talked about how toilets and changerooms are changing to be mixed-sex in Tasmania and how girls are losing their toilets in some schools. We didn't say anything horrible or nasty, we just agreed that a man cannot become a woman or a lesbian," Ms Hoyle said.

She said the Target staff member, who wore a "They/Them" badge denoting her preferred pronouns, took exception to the topic of conversation and sought to eject them from the store.

"I was absolutely disgusted with how I was treated by Target, I have never seen so much homophobia in my life," Ms Hoyle said.

Target did not respond to emails seeking comment about the decision by deadline.

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In her determination, TasCAT deputy president, Alison Clues, ruled that last year's decision of the the Anti-Discrimination Commissioner to dismiss Ms Hoyle's complaint was correct.

In that decision, the Anti-Discrimination Commissioner found there was no evidence of sexual discrimination against Ms Hoyle, and no evidence of discrimination based on her political beliefs.

"Her activity of discussion with two other women in the [store] about the belief that there is a need for female-only spaces, lesbian events and public toilets cannot be characterised as a political activity ... [as] they do not bear on government," Ms Clues wrote.

Equality Tasmania spokesperson Rose Boccalatte said she welcomed TasCAT's ruling.

"This case has been a reminder of the regular discrimination trans people face around bathrooms, and I hope that this increases the understanding of the everyday challenges that trans people face," she said.

Ms Hoyle said she is now seeking legal advice about lodging a further appeal.

It is the second case Ms Hoyle has lost before the TasCAT - last year, the tribunal ruled that her attempt to stage a lesbian-only event that excluded trans-women identifying as lesbians was discriminatory.

A crowdfunding campaign to pursue a federal court appeal of that decision has so far raised $6000.

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