For decades, the LGBTQI community has campaigned for the national survey to gather data on the prevalence of queer Australians.
On Tuesday, the Australian Bureau of Statistics released its 'census dictionary' defining terms and variables to be used in next month's count.
When the 2026 census is completed on August 11, two brand-new questions will be included.
These will ask a respondent's sexual orientation, their gender identification and expression and - in a separate question - about their sex at birth.
"For more than a century, the census has reflected the changing face of Australia, but LGBTIQ+ Australians have never been fully visible in that national story," Equality Australia chief executive Anna Brown told AAP.
"These questions will ensure LGBTQ+ Australians are finally counted in our nation's most important data collection."
The questions, 'how does the person describe their sexual orientation?' and 'what is the person's gender?' will be asked only about people over 16.
It is hoped it will create more support and understanding for the challenges faced by queer Australians.
"Census data shapes everything from health care, transport, housing and community services to public policy," Ms Brown said.
"Better data leads to better decisions ... it will give policymakers, researchers and service providers the evidence they need to identify gaps, plan for the future and better meet the needs of LGBTQ+ Australians."
Equality Australia will continue to campaign for the full inclusion of intersex people in the future, after the ABS opted against a question to include the group.
In other census changes, references to 'mother' and 'father' will be updated to 'parent one' and 'parent two' to reflect contemporary family structures.
Additionally, a question on ancestry will allow respondents to select up to four options, replacing the previous limit of two.
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