Community members have welcomed the reforms, which passed through Victorian parliament last night.

"This reform is really important because it allows for the support of the wellbeing of a marginalised portion of the population," Dr Linda Kirkman said.

"It's about identity and affirmation of a person's own identity and their knowledge of themselves."

Transgender and gender-diverse people will no longer have to undergo sex affirmation surgery to be able to change the sex on their birth certificate.

The Victorian government said the change recognised some people were unable to, or chose not to, undergo a serious, expensive and invasive medical procedure.

Lachie Flanagan had his birth certificate changed last year ago, after undergoing surgery.

He transitioned about five years ago.

The Bendigo resident said he would have changed his birth certificate earlier, if he could have.

"It just saves so many dramas," he said.

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He said a birth certificate could be among the documents requested as part of a job interview.

Applicants who were transgender and gender-diverse could find themselves almost immediately having to out themselves.

"It's a really awkward position," Mr Flanagan said.

He said not everyone was open about being transgender.

"Life is a lot easier having ID that doesn't misgender us," Cam Jones, another Bendigo resident, said.

They said the reforms reduced the risks of transgender and gender-diverse people facing hostile questions or the dangerous outing of themselves in situations like going to school or applying for passport.

"People will see them for who they really are. It will have a big impact on their mental health,' Mx Jones said.

Dr Kirkman said just calling transgender people by their chosen names had a significant impact.

Research showed young transgender people were 71 per cent less likely to exhibit symptoms of depression when people used their chosen names.

Thoughts of suicide reduced by 34 per cent, and suicide attempts dropped by 65 per cent.

Dr Kirkman said the ability to change the sex on their birth certificate to reflect who they were, without undergoing surgery, was "a massive stress lifted and affirmation and recognition".

"It will save lives," she said.

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This was not the first time reforms to birth certificates were introduced into the Parliament, with a bill defeated by a single vote in 2016.

While they said they would have preferred there were no votes opposing the changes, rather than 14, Mx Jones said the 26 votes in favour of the reforms signified respect and acceptance of transgender and gender-diverse people.

"It is a big victory and it was fought in the face of a lot of hurtful rhetoric from many sources," they said.

They thanked the community and allies who had worked tirelessly to ensure the bill passed, as well as the Labor party and crossbenchers for their supportive and emotional speeches in parliament.

"This is a great moment," Mx Jones said.

They and Mr Flanagan were among the central Victorians who advocated for the laws to be changed.

A number of residents showed their support for the cause at rallies in Melbourne.

Mx Jones said not everyone who had been calling for reform would change their birth certificates. But they would have the choice, when the time was right for them.

"I will," they said.

WHILE the reforms have been welcomed, members of the central Victorian community said people seeking to change the sex on their birth certificate still faced challenges - young people, in particular.

Children will need parental support and a supporting statement from a doctor, registered psychologist or another 'prescribed person' to confirm the decision is in their best interests.

Mx Jones hoped the list of prescribed people would be expanded in years to come, as they said young people in rural and remote areas could struggle to find a trans-inclusive doctor.

Mr Flanagan believed the biggest barrier could be a young person's parents, if they were not supportive of the transition.

The Victorian Government announced a $200,000 boost to Switchboard Victoria's funding to assist with a surge in demand for help as the bill was making its passage through parliament.

The funding will also help the organisation provide additional de-briefing to staff.

For help or support, contact Switchboard on 1800 184 527 or chat online between 3pm and 12 midnight, any day of the week.

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