That would mean using 'he' and 'she' could land people before the courts under Tasmania's controversial transgender rights reforms, legal experts have warned.
The bill would also allow parents to choose whether or not their baby’s gender is included on their birth certificate.
If made into a law, it would mean that people will also be able to change their gender on official documents when they reach 16.
The bill was passed by Tasmania's lower house last month and must now pass the state's 15-member upper house to become legislation.
Dr Greg Walsh from Australia's University of Notre Dame said although the reforms were largely
a good thing he did not agree at dictating what words people must use.
Transforming Tasmania, a transgender and gender-diverse rights group, has long praised the proposed changes, as have Labor and the Greens who have backed the bill.
"These changes will make people, who we should all care about, feel happier, safer and more included," Greens leader Cassy O'Connor told parliament.
However, Prime Minister Scott Morrison previously criticised plans to remove gender from official government documents.
"A Liberal national government will never remove gender from birth certificates, licenses and passports – who are Labor kidding? Get real," tweeted Morrison .
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