Labor and the Greens remain opposed to the Coalition’s repeal bills and their alternative scheme to tackle climate change, the Direct Action policy.
The Government says axing the carbon price will reduce electricity and gas prices, and save households around $550 a year.
In a statement, Prime Minister Tony Abbott said it showed the Government was “keeping its promise to scrap the carbon tax”.
Environment Minister Greg Hunt said passing the legislation delivered one of the Coalition’s key election promises.
“This is about the word of the Australian people,” he said.
“This is about the commitment of the incoming Government, this is about rectifying a fundamental breach of faith with the Australian people following the 2010 election.”
Earlier, the Opposition tried to amend the legislation to keep the carbon price in place, but bring forward the time at which it switched to a floating price.
Speaker Bronwyn Bishop ruled the amendments to be out of order.
Opposition climate change spokesman Mark Butler called it a “sad day”.
“This is a very sad day for the Lower House of the Parliament,” he said. “There was a great opportunity here for us to find a middle ground.”