A Queensland Government spokesman said the internal document did not properly explain the reasons for the change.
In a leaked document obtained by the Courier Mail, the decision implied that the change occurred following complaints from the LGBTQI community.
"TMR has received feedback that the collection of personal information (eye and hair colour, complexion, height) may be perceived as discriminatory by some members of the community".
A sample driver's licence without any details on gender or height.
The department, however, said drivers' licences becoming gender-free were due to the need to make driver's and marine licences compliant with new anti-discrimination laws, the Courier Mail reported.
Height was also removed from licences because of the potential for discrimination, according to the document on the department's internal system called DocBase.
It was confirmed by Bailey's office that the primary drivers for the move to scrap the information were amendments to the Commonwealth Sex Discrimination Act in 2013 and the improvement of biometric imaging and facial recognition technologies.
"The changes to federal legislation and technological improvements were not identified as drivers of change in that document". On Facebook, one person said Australia is "becoming a joke" and "too many idiots" are making decisions for "normal Aussies".
In a move that could be seen as bowing to political correctness, Opposition Leader Deb Freckleton was quoted by The Courier Mail, describing the changes as "madness" and that the Government needed to focus on real issues, not political correctness.
While drivers are still asked to nominate their gender when applying for a license, this doesn't appear on the card.
Roads minister Mark Bailey was contacted for clarification, and it was confirmed the removal of height and gender was made effective from October 2016.
"It is offensive to taxpayers that their hard-earned money has been wasted on this rubbish", she said.