NSW Premier Barry O'Farrell has come out in favour of same-sex marriage, labelling claims that it undermines the institution of marriage as "utterly ridiculous".
Mr O'Farrell declared his support for a change to the Marriage Act in the wake of the New Zealand parliament's vote to legalise same-sex marriage, Fairfax Media reports.
New Zealand is the 13th country to legalise gay marriage and the first in the Asia-Pacific.
Fairfax Media reports Mr O'Farrell would prefer federal parliament to change the Marriage Act, but is prepared to go it alone if a parliamentary inquiry in NSW finds the state can act by itself.
The premier reportedly believes the issue boils down to family.
"My view - a view that I've come to in recent years - is that as a Liberal who believes that commitment and family units are one of the best ways in which society is organised, I support the concept of same-sex marriage," Mr O'Farrell told Fairfax Media.
"Ultimately, people caring for each other works side by side with governments to create better communities."
Mr O'Farrell urged federal Opposition Leader Tony Abbott to allow MPs a conscience vote on the issue.
The claim that same-sex marriage would damage the institution of marriage was "utterly ridiculous", he said.
Last year, an attempt to legalise gay marriage failed in the Australian parliament, with Prime Minister Julia Gillard opposed to the move and Mr Abbott refusing coalition MPs a conscience vote.
NSW Greens MP Cate Faehrmann praised Mr O'Farrell for showing leadership on the issue.
"Barry O'Farrell has put Tony Abbott and Julia Gillard to shame on their lack of leadership to end discrimination and support marriage equality," Ms Faehrmann said in a statement."
She said Mr O'Farrell was "now on the right side of history".
"We can't underestimate what this leadership from the Premier means," Ms Faehrmann added.
"If the Commonwealth fails to act, I'm confident that the NSW Parliament will."
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