The event, one of the largest gay and lesbian parades in the world, attracted more than 12,000 participants.
It takes place as campaigners are fighting to get Australian leaders to legalise same-sex marriage.
PM Malcolm Turnbull, who attended the event but did not march, backs a public plebiscite on the issue.
Bill Shorten, the head of the opposition Labor Party, who did march in Sydney, has promised to introduce a same-sex marriage bill within 100 days if his party is elected.
One poll released this week showed that while a majority of Australians think same-sex marriage should be introduced, .
