Gay groups have applauded the decision to give formal recognition to their partnerships, “This is a very significant step forward in our push towards full legal equality under Australian law," said Peter Furness, national convener for the Australian Marriage Equality.
"Couples from around the country can also now receive formal recognition and can celebrate their love and commitment in a civil union ceremony sanctioned and approved by the state," he added.
The territory's chief minister, Jon Stanhope, said that the laws did not change the meaning of marriage, "Civil unions will deliver recognition, without conflicting with or changing the meaning of marriage," Mr Stanhope said.
Controversy
The bill had been hugely controversial, with federal Attorney-General Phillip Ruddock at one point threatening to use commonwealth powers to veto it, but after the legislation was passed a spokesman for Mr Ruddock said he was happy with the amendments made to the original bill.
The main amendment dealt with commonwealth authorised marriage celebrants officiating at civil union ceremonies.
However, the spokesman warned that Mr Ruddock would still look closely at all of the details to ensure the legislation doesn't conflict with commonwealth law.
ACT Attorney-General Simon Corbell said he had been happy to move the amendments to pass the bill, "While I do not necessarily accept that the bill has the effect that Mr Ruddock claims, I am nevertheless happy to move these amendments to put these issues beyond doubt," he said.
"Given these amendments, there is no reason why the commonwealth should override this legislation." Mr Corbell added.