New South Wales' Rainbow Labor's proposal for Australia to adopt New Zealand-style Civil Unions has drawn criticism from within the LGBT activist community.

"Civil unions are not a stage through which Australia must pass, but a mistake from which we must learn," Australian Marriage Equality spokesman Peter Furness told the Sydney Star Observer.

However, Rainbow Labor NSW spokesman Michael Vaughan believes there is broad community support for the idea and is working with ministers on moving it forward, but is also lobbying for full same-sex marriage rights as a first option.