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The government said a non-binding ballot, or plebiscite, was the quickest method to amend the Marital relationship Act.
Same-sex pairs can have civil unions or registered relationships in many Australian states but they are ruled out married under nationwide law.
However resistance celebrations as well as many fans of same-sex marital relationship said a plebiscite would be costly and also can let loose a divisive campaign.
The proposal's loss in the senate implies the concern will be taken off the agenda at the very least until the next term of parliament.
Marital relationship equal rights has actually shown a challenging problem for Head of state Malcolm Turnbull. He is directly in favour of same-sex marital relationship however is reluctant to enable his own MPs a totally free vote on the concern.
Labor Legislator Penny Wong told parliament that, after much soul-searching, she had actually decided to oppose the plebiscite.
Greens Legislator Janet Rice spoke about the difficulties of her 30-year marital relationship to transgender female Penny.
\" We understand that our same-sex marital relationship is equally as vital and valid as well as deep and wonderful as well as loving as our heterosexual one was,\" she stated.
Attorney-General George Brandis during the elect the same-sex marriage plebiscite costs
Attorney-General George Brandis charged the Labor Celebration of \"playing national politics with gay individuals's lives\".
\" A vote against this expense is a vote versus marriage equality,\" Senator Brandis informed parliament.
\" Those who declare to rely on marriage equality, yet nevertheless, for their own negative, game-playing factors, are determined to elect against it, should hang their heads in pity.\"
Labor revealed last month that it would certainly not sustain the expense, condemning it to fall short in the senate this week.
The action was commemorated by same-sex marital relationship fans that commonly favour the issue being voted on by parliament, without the need to place it to the public.
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Australia's federal government intends to hold a non-binding plebiscite on whether to allow same-sex marital relationship, although a date has not yet been scheduled.
The Australian Electoral Commission formerly estimated the price of running the plebiscite at A$ 158m.
But research by accounting firm PwC said this number was also reduced, as it did not permit \"overall financial prices\".
PwC's record stated holding a stand-alone plebiscite on a Saturday would cost Australia's economic climate $A280m in lost productivity.
Its effect on the \"mental health and wellness and also health and wellbeing of Australian citizens\" would additionally set you back at the very least $A20m, the report claimed.
Financing the campaigns for as well as against the proposal would set you back a more $A66m, it said.
\" The actual expenses to federal government, the economic climate as well as participants of the community to hold a standalone plebiscite are greater than three times greater than the numbers frequently priced quote,\" PwC Australia CEO Luke Sayers claimed in a declaration.
\" Total economic expenses have not been taken into consideration before and ought to belong to the argument on the most effective method to achieve a resolution to this issue.\"
But Liberal senator Eric Abetz, a challenger of same-sex marriage, wondered about PwC's technique in computing the price of lost productivity.
\" Since, fairly frankly, to attempt to think about and also double the number on the basis of the time required to vote as being a variable primarily states, 'look, allow's get rid of freedom; each time people go to the ballot booth it costs them $281m',\" he told the Australian Broadcasting Corp.
Legislator Abetz has formerly shown that he might not see the results of the plebiscite as binding.
The PwC research said that if a public poll were taken simultaneously with the upcoming federal political election, as opposed to as a stand-alone vote, it would certainly cost $A113m.
The stand-alone public vote was initially revealed by the former head of state Tony Abbott.
Malcolm Turnbull said he would push ahead with the plebiscite after changing Mr Abbott as head of state in 2014.
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