Cricket Australia unveiled new guidelines on Thursday to ensure transgender players can take part in the game at the highest levels.
The policy sets out a testosterone limit for transgender and gender-diverse players who want to play for state and national women's teams.
"It doesn't make any sense that today, people are discriminated against, harassed or excluded, because of who they are," Cricket Australia chief executive Kevin Roberts said in a statement.
They must also be able to demonstrate their elected gender is consistent with how they are living their lives on a daily basis.
The move more closely aligns Australia to the International Cricket Council's gender diversity guidelines.
The guidelines cover everything from victimisation to privacy and providing suitable facilities, as well as the collection of personal information.
Transgender participation in sport has proved a thorny issue with some prominent stars, including tennis great Martina Navratilova, voicing disquiet.
Former Australian cricketer, Alex Blackwell, who has been at the forefront in bringing the policy together, said, "Australian cricket has a really wonderful purpose, and that's to be Australia's favourite sport, and a sport for all Australians, and it's really important that we live by that, and we walk the talk."
Australian cricketer Megan Schutt welcomed the move and said: "To have a policy and guidelines that includes transgender and gender diverse players will create a better environment for everybody to play the game."
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