Victoria has become the fifth state to allow transgender and gender diverse people to change their sex on their birth certificate.

The birth certificate bill passed 26-14 in the Victorian Upper House on Tuesday night, meaning it will officially become law once it receives the royal assent.

Under the new laws, transgender people will have the freedom to have their legal documents reflect the sex they identify with socially even prior to undergoing gender reassignment surgery.

Children will also be able to self-nominate to change their gender or select a non-binary descriptor of their choice with permission from their parents.

The birth certificate bill passed 26-14 in the Victorian Upper House on Tuesday night, meaning it will officially become law once it receives the royal assent

Children will also be able to self-nominate to change their gender or select a non-binary descriptor of their choice with permission from their parents (stock image)

STATES THAT ALLOW CHANGING GENDER ON BIRTH CERTIFICATES The following states and territories have passed bill reforms which allow transgender people to change their sex legally without gender reassignment surgery: Tasmania Northern Territory South Australia Australian Capital Territory Victoria Advertisement

A statement from a psychologist or doctor will also need to accompany the submission for a minor, The Age reported.

'Interstate and international evidence shows that whilst not a large number of people take up the these options it's simply is an option that's there to people,' Equality Minister Martin Foley told 3AW on Wednesday.

'Its the choice to make sure that identity documents reflect the reality of the life that people live.'

Victoria joins Tasmania, Northern Territory, South Australia and the ACT in passing the laws.

In April Tasmania was the first state to make the inclusion on birth certificates.

Gender diversity activists took to social media to celebrate the success, which marks a significant win in the fight for transgender equality in Australia.

Attorney-General Jill Hennessy said the reforms were well overdue, after the Andrews government failed to see them passed through parliament the first time in 2016.

'These overdue reforms will ensure that trans and gender diverse people can have a birth certificate which reflects their true identity,' she said in a statement shared on Twitter.

'A small thing to many, but it means a world of difference to someone else.'

Previously, a formal name change on a legal document like a birth certificate required undergoing gender reassignment surgery prior to approval.

'The current surgery requirement sends a painful and false message that there is something wrong with being trans or gender diverse that needs to be 'fixed' – that's why we're removing this cruel and unfair barrier.'