The terrorism legislation was rushed through the Senate, where the government has a majority, on Tuesday evening after the government gagged debate on the bill.
The bill will give unprecedented powers to police and spy agencies and will allow terror suspects to be detained without charge for up to 14 days, impose controls orders on suspects for up to 12 months and impose a seven-year jail term for sedition.
The legislation also gives police tougher stop, search and seizure powers, and allows greater use of security cameras.
Government amendments to the legislation included giving more time for businesses to respond to anti-terror financing checks, enabling courts to consider a summary of grounds when deciding whether to issue the interim control order and allowing greater access to lawyers for those facing preventative detention.
Other concessions were greater power for the commonwealth ombudsman to oversee detention, detainees will have greater access to relatives and police will need to satisfy a greater number of grounds to impose limits on who a suspect can contact.
Changes to sedition laws will protect the publication of news reports or commentaries about matters of public interest.
The Australian Law Reform Commission will review the sedition provisions next year.
Minor parties, the Australian Greens and the Democrats along with the Law Council accused the opposition Labor party of selling out civil rights by supporting the bill.