Last-minute lobbying by West Australian farmers and exporters was not enough to have the legislation blocked, with the bill passing the Senate late on Monday night.
Supporters of the live export trade who travelled to Canberra, have vowed to target the Albanese government in marginal Labor seats across Australia.
Ben Sutherland says a 'farmy army' will target marginal Labor seats at the next election. (Lukas Coch/AAP PHOTOS)
"Make no mistake, the 'farmy army' ... are coming to get them," Ben Sutherland, whose West Australian trucking business relies on sheep transport, said on Tuesday.
"They've disrespected agriculture ... we're not going to stop now, we've only just started," he told AAP.
"We tried to change the policy, but that hasn't worked. If we can't change the policy, we will change the government," he said.
The legislation will mean an end to live sheep exports by sea on May 1, 2028, with a $107 million transition package to flow to affected farmers.
"We made a commitment at two elections to phase out the export of live sheep by sea, after years of community concern about the trade," Agriculture Minister Murray Watt said in a statement.
"Around 70 per cent of West Australians support ending this industry and the parliament has now acted."
Agriculture Minister Murray Watt said Labor was following through on its election promises. (Lukas Coch/AAP PHOTOS)
The ban has been welcomed by animal rights groups.
Australian Alliance for Animals' Jed Goodfellow described the phase-out as a pivotal moment in the history of animal welfare.
"This legislation has been a long time coming for our members and their two-million-plus supporters who have been calling for an end to this cruel and unnecessary trade for decades," Dr Goodfellow said.
But the coalition has vowed to overturn the legislation if re-elected.
Labor has "once again treated farmers with contempt" by ignoring pleas to save live sheep exports, Nationals leader David Littleproud said, and live cattle shipments could be next.
"Farmers now know Labor is willing to sell them out and shut down a successful, world-class trade based on ideology," he said.
"This decision is simply Labor bowing down to animal activists, even though Australia has the world's best animal welfare standards."
WA Liberal senator Michaelia Cash said on Monday night a vote for the coalition was a vote for the state's vibrant sheep industry.
"There are some very basic questions that need to be answered by the prime minister in relation to turning his back on Western Australia ... Why do you hate WA farmers so much?"
But Senator Watt said the live sheep export trade had been shrinking for some time.
"Live sheep exports by sea from Australia have been plummeting over the last 20 years," Senator Watt said.
Moves to end the trade came after thousands of sheep died of heat stress en route to the Middle East (Richard Wainwright/AAP PHOTOS)
The legislation also won the support of Greens senator Mehreen Faruqi who wanted the trade dropped because of animal welfare concerns.
"Nothing can be done to make live export ships safe for animals, this cruel trade is irredeemable, and the only option is to shut it down," Senator Faruqi told the Senate on Monday night.
"Now it is beyond time, to shut down this industry, once and for all."
Labor vowed to end the trade following animal rights concerns after thousands of sheep died of heat stress while en route to the Middle East.
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