Previously, inked up donors had to wait four months to give blood after getting their tattoo.
But as of Monday, the wait time has been reduced to a week.
The new rules apply only to tattoos received in licensed Australian tattoo parlours or cosmetic clinics.
People who received tattoos in unlicensed or overseas premises will still need to wait four months before donating.
With one in four Aussies now inked, Lifeblood executive director of Donor Experience Cath Stone said the change will boost blood donations.
"We're thrilled that from today we can welcome thousands of eligible tattooed donors who would previously have had to wait four months to donate blood," Ms Stone said.
"You can now donate blood just seven days after a new tattoo, or you can donate plasma straightaway, without any wait period at all.
"We want to make sure everyone knows being inked doesn't disqualify them from donating."
She said close to 10,000 donors report one or more tattoos a year to Lifeblood, so the rule change could result in around 10,000 extra blood donations each year.
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