The Gillard government declared victory for a "historic economic reform" today after the Senate finally passed a carbon tax - laws that have created political havoc for four years and have been debated for more than a decade. The government won the historic vote in the upper house 36 to 32.

Labor and the Greens combined to pass the 18 "Clean Energy Future" bills just after midday, to applause from the packed public galleries.

Historic day ... for Julia Gillard, who lost popularity after vowing before the election there would be no carbon tax under her government. Credit:Andrew Meares

Finance Minister and former climate change minister Senator Penny Wong said that, on the Labor side of politics, "we accept the science, we accept the need to act [on climate change], and, like John Howard and Malcolm Turnbull, we accept the science and the advice that putting a price on carbon is the best way to reduce emissions."