The carbon tax has been abolished by parliament.
The Senate on Thursday voted 39-32 to scrap Labor's carbon pricing scheme after securing the support of Palmer United Party senators and other crossbenchers.
Subdued applause from government senators greeted the result as the Abbott government finally delivered on its key election promise.
The vote followed days of protracted negotiations with Clive Palmer, who embarrassed the government last week by pulling his crucial support for the repeal at the last minute.
Mr Palmer's concern the government had not honoured a previous deal over its amendments resulted in his Senate team siding with Labor and the Greens to vote down the repeal.
But they've since agreed on tougher measures to ensure cuts to electricity and gas prices are passed through to consumers and businesses, and this time around PUP backed the government.
The three PUP senators and the Australian Motoring Enthusiast Party's Ricky Muir gave the government four of the six crossbench votes it needed to abolish the tax.
Family First's Bob Day and Liberal Democrat David Leyonhjelm - who also joined the cross bench on July 1 - rounded out the majority needed.
Another crossbencher, the DLP's John Madigan, voted for the repeal.
Independent Nick Xenophon was not in the chamber for the vote.
Labor and the Australian Greens opposed the repeal but didn't have the numbers to save the scheme introduced by the Gillard government in 2012.
Greens leader Christine Milne made a last-minute plea to the crossbench telling them it was a "critical moment" for the nation.
A vote to repeal was a vote for failure to address global warming, she warned.
"Australia will be relegated to a pariah and a backwater."
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