The Australian share market has closed more than one per cent higher as investors welcomed a deal that averted the so-called US fiscal cliff.

At the close on Wednesday, the benchmark S&P/ASX200 index was 57 points, or 1.23 per cent, higher at 4,705.9 points, while the broader All Ordinaries index was up 58.3 points, or 1.25 per cent, at 4,722.9.

On the ASX 24, the March share price index futures contract was 66 points higher at 4,682 points, with 14,920 contracts traded.