The House of Representatives had to be recalled today to vote on the bill, and at 2:15pm the Gillard Government finally had its way.
The passing of the bill paves the way for Labor's proposed National Broadband Network (NBN).
After a feisty afternoon of debate, the vote passed on the voices without the Coalition calling for a division.
Leader of the House Anthony Albanese said structurally separating Telstra was "historic micro-economic reform".
"We know that the structural separation of Telstra has been an issue that has been talked about from every telecommunications commentator, academic and many of the operators themselves, having acknowledged that this reform is vital," he said in Parliament.
Parliament was feisty for its final day, with Prime Minister Julia Gillard and Opposition Leader Tony Abbott trading barbs.
"2010 is ending very badly for the Australian Labor Party," Mr Abbott said.
Ms Gillard accused the Federal Opposition of being "empty of ideas", a "weather vane" and having "a temper tantrum", and said it displayed "bitterness" and "negativity".
Mr Abbott interjected, labelling Ms Gillard's slurs "outrageous".
Speaker Harry Jenkins warned Mr Abbott, and two other MPs were warned as the volume within the chamber soared.
Independent MP Rob Oakeshott slammed some members of the Coalition for not turning up to work, while pointing out all of the independents had returned to Canberra for the afternoon sitting.
"Where are your members who are supposed to be here working," Mr Oakeshott thundered.
"I did not come here for rhetoric over reality."
At one point independent MP Andrew Wilkie tried to shut Mr Turnbull down by calling a vote.
"So much for the sunshine," Mr Turnbull said.
Independent Bob Katter voted with the government, along with Mr Wilkie, to shut the debate down but their crossbench counterparts Rob Oakeshott, Adam Bandt, Tony Windsor and Tony Crook voted with the Coalition to allow debate to continue.
However at 2:15pm, after two hours and 15 minutes, it was all over, with Ms Gillard and Mr Albanese left smiling, while the Coalition benches looked somewhat bleaker.
Speaker Harry Jenkins said he hoped when Parliament resumed in February next year it would be more "robust" and "efficient", and a "less adversarial place".
Parliament resumes on February 8.
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