The Human Rights Commission says it has heard disturbing stories of discrimination against gay and transgender Australians.

It has released a report arguing there is a strong case for the creation of federal laws to protect against discrimination on the grounds of sexual orientation or gender identity.

Commissioner Catherine Branson says government opposition to same-sex marriage appears to be out of step with public opinion.

The commission undertook public consultations in Sydney and Melbourne, calling on gay, lesbian and transgender Australians to tell their stories.

Ms Branson says she was disturbed by what she heard.

"We heard of people born intersex who were experiencing being called freaks in their workplaces and otherwise harassed and verbally abused, sometimes physically abused on the streets," she said.

"We heard of people losing their employment once it was known they were in same-sex relationships.

"We heard very disturbing stories and often involving physical violence."

The commission says its report shows there is broad support for federal protection against discrimination on the grounds of sexual orientation or gender identity.

Ms Branson says it is a call for everyone to consider the position of people in the community who do not enjoy the rights the majority do.

She says their feedback indicated that all people want is to be treated the same way that most people take for granted.

"I think there is very broad support in the community for protections on the grounds of sexual orientation and sex and gender identity to be provided," she said.

Corey Irlam from the Australian Coalition for Equality welcomes the report.

"The beauty of this situation is both the Federal Government and the Opposition, in principle, have agreed to introduce these laws as part of the national harmonisation process that's going on," he said.

"But what this does do is it gives the opportunity for the Government to know exactly what they need to do. As to when they do it we've yet to find out."

Same-sex marriage

The Commission says there is a strong case for same-sex marriage.

Ms Branson says allowing same-sex marriage is an important aspect of equality for the people they spoke to.

"This consultation didn't purport to be a sound survey of the Australian population ... but there is growing evidence that a very significant proportion of the Australian population agrees," she said.

The Federal Government is drafting anti-discrimination legislation which it says should be released for public consultation sometime this year.

On the issue of same-sex marriage, a spokesman for Attorney-General Robert McClelland confirmed the Government's position was that marriage was between a man and a woman.

The spokesman said any change to that position would need to be considered by the ALP national conference.