The ACT can now make its own laws without the fear of the Federal Government overriding them at the whim of the minister of the day.
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Late yesterday the House of Representatives passed a Bill to disallow ministerial intervention into territory law.
It sparked a new debate about gay marriage and will drive the ACT Government to push harder for a review of the self-government legislation
''This is fantastic,'' ACT Chief Minister Katy Gallagher said.
''While we still believe there is a need for a review of the self-government Act, there was no need to delay a piece of legislation that makes this sensible change to the way the veto over territory law operates.
''We've never felt that overturning the laws of a democratically elected government at the swipe of a pen was a fair situation.''
As the ACT gained autonomy over its laws, the passage of the legislation made history as the first Greens' Bill to pass both houses of Parliament.
The Bill, which has already passed the Senate, will be signed into law by Governor-General Quentin Bryce. The Federal Government will now need the approval of both chambers to override legislation in the ACT and the Northern Territory, rather than applying a veto at the stroke of a ministerial pen.
The Opposition unsuccessfully tried to amend the legislation to make sure it would not be used to legalise gay marriage.
Any move to legalise gay marriage would be against the federal marriage law, and euthanasia has been banned by federal parliament.
However, the Labor Party national conference next month is expected to give federal MPs a conscience vote on gay issues when it comes before Parliament next year.
Ms Gallagher said the ACT had made significant progress towards same-sex marriage with the introduction of civil unions.
''We did everything we could to push it as far as we could but we also acknowledge there is more to be done there,'' she said.
She said the Federal Government had indicated it would be happy for the ACT to undertake a review of the self-government legislation.
But the ACT would continue to push for a joint review, she said.
Labor MP Gai Brodtmann described the passage of the Bill as a ''good day for democracy''.
''It enhances the democratic rights of Canberrans, it means that our rights are not diminished against those over the border at Queanbeyan,'' she said.
Greens leader Bob Brown welcomed the passage of the first Greens Bill.
''Support for the Bill is an extension of the new politics in Australia, where people have voted for greater diversity and support better representation for all Australians,'' he said.
''It is simply common sense.''