If passed it will give people over 25 and expected to die within 12 months, access to medically assisted euthanasia.
Mr Khan said current laws don't stop people trying to end their lives and the legislation would encourage discussion of euthanasia with a doctor, providing more humane options.
"Is it fair and reasonable that a person has to choose to starve themselves to death to bring an end to their suffering? That's an appalling choice that's presented to people now," Mr Khan said.
Safeguards in the bill include a 48-hour cooling-off period and the right of close relatives to challenge patient eligibility in court as well as a requirement that two medical practitioners approve the final decision.
A professional speech pathologist, Ms Gabrielides, from the Blue Mountains, has been given a 12-month prognosis and is terrified of an undignified, drawn out and painful death.
The "bastard of a disease" had made daily tasks a struggle and speaking, using her hands and eating almost impossible, Ms Gabrielides said.
Her husband, daughter and son joined her at Parliament House.
Paul Gabrielides said the decision for his wife to end her own life had been made more than 35 years after watching his mother die a horrible death.
"We had decided right there and then that we were not going to experience the same thing," Mr Gabrielides said.
A change.org petition seeking support from MPs for assisted dying laws has received more than 51,000 signatures.
Nobody in the family wanted Ms Gabrielides to die but they supported her choice, daughter Eleni, 20, said.
"It was never a question for me. Our family has always been about supporting each other and loving each other no matter what," she said.
Euthanasia is not legal in any Australian state or territory despite being briefly legalised in the Northern Territory.
Victoria is also working on a bill to legalise assisted dying and it is expected to vote on it later this year.
