The government's first question time since passing the carbon tax legislation in the lower house was almost inaudible at times today.
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The public gallery erupted in chanting, with the speaker Harry Jenkins cautioning visitors to behave themselves.
Mr Jenkins said he would not be clearing the gallery, but said: "I will not be endangering those who are employed by the Parliament to keep order in the gallery."
Click the photo for the question time gallery.
A member of the public in the gallery kept goading Prime Minister Julia Gillard with chants of "Liar."
About 80 protesters chanted "democracy is dead" and "no mandate".
They included Peter Madden, who helped organise the convoy of no confidence in August.
There were two teams of protesters, seated on each side of the lower house chamber.
They stood up one group at a time to disrupt Ms Gillard as she attempted to answer a question from a Liberal MP.
The protesters were escorted from the chamber by security guards but could still be heard as they left the public area.
Earlier, one woman shouted "liar" while Ms Gillard was addressing the house.
Speaker Harry Jenkins warned that it was a privilege to be allowed into the public gallery.
"I hope that visitors understand they are not permitted to intervene in proceedings," he said.
After Mr Jenkins's comments, another 14 protesters, one with an Australian flag, stood up on either side of the chamber and shouted the same slogans.
They were ejected promptly.
Two male protesters then stood up from the speaker's gallery, at the end of the chamber, waving shoes and shouting at the Prime Minister: "What happened to your shoe leather?"
One of the men got into a wrestle with security guards as they tried to remove him from the gallery.
Carbon tax is Gillard's 'magic pudding'
Click the photo for a gallery on the historic proceedings.
Australia's carbon tax is set to become law after the lower house of parliament passed the government's historic but controversial set of bills to establish the world’s most broadly based carbon pricing scheme.
Against last-minute efforts by the opposition to delay the passage of the bills and 11th hour pleas for amendments by some business groups, the government passed its 18 pieces of legislation by a vote of 74 to 72 just before 10am.
Victorian Farmers Federation president Andrew Broad said it was 'disappointing'.
“Two thoughts. It’s disappointing the federal government has fallen back to its default position that the only way to fix a problem is to apply a tax,” he said.
“In 2050, we’ll have a population of nine billion which will need energy and food and increases in technology and production will be the only way we can address the world’s needs. It won’t be helped by a carbon tax.
“The other is this – it’s Julia Gillard’s magic pudding tax. She’s spun the line that somehow she can tax us all and we’ll be better off. I’m not sure Australians are that naïve.”
Member for Indi Sophie Mirabella did not vote this morning after she was suspended for 24 hours from parliament from 10.30pm yesterday by fellow Liberal politician and deputy speaker Peter Slipper.
The vote in the lower house, which was applauded by Labor MPs and spectators in the public gallery, was the crucial test for the government given its wafer-thin majority. The bills will now go the Senate for debate but will pass comfortably with help from the Greens, probably in November.
After the vote, Prime Minister Julia Gillard embraced Climate Change Minister Greg Combet, who had the difficult job of steering the policy, and even exchanged a peck on the cheek with Foreign Minister Kevin Rudd, whose reported ambitions to retake the leadership are proving a headache for the Prime Minister.
Nationals Member for Riverina Michael McCormack was ordered from the house for one hour for disorderly conduct.
The passage of the bills are a crucial victory for Ms Gillard, whose popularity has steadily fallen since last year. The legislation means that about 500 of the biggest carbon-emitting companies in Australia will pay a price for each tonne of carbon. Most of the biggest emitters are electricity generating firms, mining companies and heavy industry manufacturers.
To compensate households, the government is cutting income taxes and boosting payments such as pensions and other benefits, as well as offering various lump sum payments.
The average household is expected to pay about $9.90 a week in extra living costs, including $3.30 on electricity. However this will be offset by an estimated $10.10 in extra benefits and tax breaks. The Australian scheme will cover about 60 per cent of Australia's emissions, making it the most broad-based in the world.
Use the government-supplied 'household assistance estimator' to determine the impact the carbon tax will have on your household.
Shortly before the vote, Mr Combet told ABC radio today was the culmination of a long and often gruelling debate.
"Look it's been very bruising political argument, that's quite right," he said. "If you fast forward 12 months time and the legislation is through, the carbon price, emissions trading scheme is in place and the economy is managing to deal with the reform, the cost impacts are modest as we have been saying, we'll have applied tax cuts and increases in the pensions and family tax benefits, nine out of 10 households receiving some assistance to adjust with this reform."
Opposition Leader Tony Abbott has vowed to repeal the legislation if he becomes prime minister, though the government has insisted he will not be able to manage that.
The bills were passed with help from crossbench MPs Rob Oakeshott, Tony Windsor and Andrew Wilkie, as well as Greens MP Adam Bandt.
