New South Wales has become the third Australian state or territory to allow same-sex couples to adopt children.
A sharply-divided state parliament passed legislation on Thursday.
MPs were given a conscience vote and the legislation was pushed back and forth between both houses as each sought to make amendments, the ABC reports.
Under the final provisions, faith-based adoption agencies will be exempt from anti-discrimination considerations.
People giving up children for adoption will have greater certainty that their preferences regarding prospective parents will be met.
ACT and Western Australia also allow same-sex couples to adopt children.