Prime Minister Anthony Albanese confirmed the Australian Bureau of Statistics was working on a single sexuality question, after his government initially scrapped its plan to include it.
But the queer community has called for the government to ensure the next national snapshot in 2026 covers gender diversity.
The Community and Public Sector Union echoed this, saying one question on sexuality was "a half-baked response".
A full picture of the community was needed to ensure effective and equitable public policy and services, the union's ACT regional secretary and queer network co-convenor Maddy Northam said.
"Excluding the LGBTIQ+ community from the census was a mistake," she said.
"It is now crucial that the government follows through by expanding the scope of questions to make sure all LGBTIQ+ Australians are counted."
Equality Australia CEO Anna Brown criticised any suggestion data collection was divisive. (Lukas Coch/AAP PHOTOS)
Sex Discrimination Commissioner Anna Cody said all Australians needed to be covered in the census, so the government had the data to make informed policy decisions.
This included the intersex community, she said, as the government works on a 10 year LGBTQI health and wellbeing plan.
The Greens will force a vote in both houses of parliament over adding the questions but the exact political procedure is yet to be determined.
Senior Labor ministers said the government had scrapped the question to avoid a divisive debate, before the prime minister announced on Friday it would go ahead, after days of backlash.
Equality Australia CEO Anna Brown criticised any suggestion data collection was divisive.
"Frankly, it's absurd and offensive to suggest that LGBTQI people's existence is somehow a threat to our society," she said.
"We were quite staggered by those comments."
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