The next battle over same-sex marriage will be in the High Court after a decision by the ACT parliament to enact its own laws.
To a rendition of Love Is In The Air, the territory's legislative assembly on Tuesday narrowly passed a marriage equality bill that puts it at odds with the federal government and church groups.
"We are making a clear statement about the sort of society that we want to live in," the ACT's openly gay deputy chief minister Andrew Barr told the assembly.
"Whether it's the rainbow territory or the city of love, it's an important journey for us."
Hundreds of same-sex couples have registered their interest in marrying in the ACT.
The first weddings are likely to be held from December, provided the Abbott government doesn't seek an injunction preventing ceremonies going ahead before the new laws are tested in the High Court.
The bill passed by nine votes to eight, just over a year after federal parliament rejected a same-sex marriage bill 98-42.
Federal Attorney-General George Brandis reiterated the government's view that the ACT government should await the outcome of a legal challenge by the Commonwealth.
"It would be very distressing to individuals who may enter into a ceremony of marriage under the new ACT law, and to their families, to find that their marriages were invalid," he told AAP.
ACT attorney-general Simon Corbell said same-sex couples would marry knowing the risks.
He accused the Abbott government of being patronising by suggesting that same-sex couples were being misled or confused about pending legal issues.
ACT Chief Minister Katy Gallagher said it was ridiculous to ask a parliament not to use its laws.
The territory government believes its law creates a separate form of marriage for same-sex couples, and will hold in the High Court.
The Commonwealth argues the new ACT laws are invalid because they are inconsistent with the Marriage Act, which defines marriage as "the union of a man and a woman to the exclusion of all others".
ACT Liberal Opposition leader Jeremy Hanson told the assembly legalising same sex marriage was not a responsible thing for it to be doing.
"We are Australia's smallest parliament in a small jurisdiction and we do not think that a majority of one person in the ACT should change the definition of marriage for a country of over 23 million people," he said.
Mr Hanson said Ms Gallagher had effectively pre-judged the High Court's decision by not agreeing to the federal government's request to not allow any same-sex marriages to take place until after the case was heard.
Greens MP Shane Rattenbury, who holds the deciding vote in the 17-member assembly, said it was a landmark moment for the ACT.
"Ladies and gentlemen, enjoy getting married," he told the gallery.
Australian Greens leader Christine Milne said the legal challenge revealed a "meanness of spirit" by Prime Minister Tony Abbott.
Shadow Attorney-General Mark Dreyfus told ABC 24 he didn't believe the same-sex marriage laws were a constitutional issue that should be decided by the High Court.
"It's a political debate. I think that what George Brandis and Tony Abbott are doing here is a diversion and the proper place for this to be debated is in fact the federal parliament," he said.
SBS reporter Shalailah Medhora captures the reactions following the historic development of the ACT becoming the first Australia jursidiction to legalise same-sex marriage.
Watch this video report on YouTube: