A smiling Mr Rudd said he would respond, first by honouring the traditional owners of the land, now occupied by Parliament House, as well as the traditional owners of all lands across Australia.
He said exactly 100 years ago Canberra was chosen as the site of the nation's capital, 80 years ago the first parliament house was built and 20 years ago new parliament house opened.
"Yet the human history of this land stretches back thousands of years to the dreamtime," he said.
Mr Rudd said indigenous people had occupied the land for thousands of generations but Europeans only for five, six or seven.
"Despite this antiquity among us, despite the fact that parliaments have been meeting here for the better part of a century, today is the first time in our history that as we open the parliament of the nation, that we are officially welcomed to country by the first Australians of this nation," he said to applause.
Mr Rudd thanked Ms House-Williams for her welcome.
"For that welcome, we are all here, senators and members, truly honoured."
Mr Rudd said when the first parliament house was opened in 1927, Aboriginal and Torres Strait Islander people were "not welcome at all".
"No place at the national table as we began the national parliament ... but one man Jimmy Clements came and stood alone."
The Canberra Times referred to him as "a lone representative of a fast-vanishing race".
Mr Rudd said he celebrated that indigenous Australia was alive, well and with us for the future.
"Today we begin with one small step, to set right the wrongs of the past, and in this ceremonial way it is a significant and symbolic step."
Mr Rudd said the ceremony should become a permanent practice for future governments.
"Let this become a permanent part of our ceremonial celebration of the Australian democracy."
Opposition Leader Brendan Nelson said the opening of parliament would never be the same again.
"On behalf of the alternative government and supporting the prime minister, whatever happens in future parliaments so long as I have anything to do with it we will have a welcome from Ngunnawal and their descendants," he said.
Dr Nelson said the coalition, whether in government or opposition, was committed to improving the situation for indigenous Australians.
"We go forward determined, no withstanding our inadequacies as human beings and at times as representatives, to ensure that the mistakes that we have made in the past that we will not ever make again," he said.
"And we respect the dignity of humankind, of racial background and of difference but determined to be a better people and a better nation.
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