The Australian Capital Territories (ACT) government said on Monday that it is monitoring the situation in Tasmania after the territory's Legislative Assembly prepares a draft law to recognise same-sex marriage.

ACT Attorney-General Simon Corbell hinted the state government is not ruling out following Tasmania's path at some point. Tasmania's bold initiative prompted senior federal Liberal Eric Abetz to challenge Prime Minister Julia Gillard to shoot down the plan by the territory to legalise gay marriages which was initiated by the Australian Labor Party's Tasmania conference over the weekend.

Tasmania Premier Lara Giddings defended the decision by the ALP in the state as not picking a fight with anti-gay marriage groups or with other political parties, but addressing a social change which is happening.

She acknowledged the issue may end up with the High Court, which is the same opinion of leading constitutionalist lawyer George Williams.

Tasmania is considered a national leader insofar as laws favouring gays are concerned since Australia decriminalised homosexuality in 1997. Besides being the first territory to enact a law that would formally recognise same-sex union, it is the second to allow official ceremonies for gay couples and the first to recognise same-sex marriages done overseas.

Rather than have states or territories legislate same-sex union laws, federal Labor MP Ed Husic said the matter should be decided on a federal level by the Australian Parliament since Ms Gillard would allow a conscience vote on the issue.

"Instead of having 50 million of these debates occur all over the place, just manage it in a way it is supposed to be - under the federal act," Sky New quoted Mr Husic.

RELATED STORIES