LA TROBE University students and staff raised a rainbow-coloured flag to celebrate diverse sexual identities on Wednesday.
The rainbow flag was part of an annual event to recognise gay, lesbian, bisexual, transgender, intersex and queer students and staff.
Queer counsellor Jan Taylor said university management was supportive of the queer community.
"We now have understanding that we're not all the same," Ms Taylor said.
Student Scotty Dealy, 22, said many students struggled to feel accepted.
"Stereotypes in the community are more prevalent in country areas so it's great to have a big institution in a rural area saying, 'hey it's okay to be gay.'"