The Labor Party voted overwhelmingly today to change its policy to support gay marriage amid cheers at the party's national conference in Sydney.
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However, delegates also endorsed Julia Gillard's call for Labor MPs to have a conscience vote when the issue goes before federal parliament next year.
Labor's decision to remove its objections to same sex marriage does not necessarily mean the federal Marriage Act will be changed.
Tony Abbott has refused to allow Opposition MPs a conscience vote and the issue is fiercely opposed by some Right Labor MPs.
The vote resulted from late night negotiations to protect the Prime Minister from a rebuff at the conference.
The motion to make the historic change to Labor's policy was moved by ACT Deputy Chief Minsiter Andrew Barr, who is openly gay.
"Gay, lesbian, bisexual, transgender and intersex Australians are part of our community," he said.
"We're not nameless, faceless people who live on the margins of society.
"We deserve the respect and the dignity afforded to others. We deserve equality."
Union official Joe de Bruyn and Labor Senator Helen Polley opposed the change to the party policy.