Independent senator Glenn Lazarus has accused Labor of getting into bed with the Turnbull government to kill Australia's shipping industry.
Senator Lazarus said legislation which excludes Australian ships used solely for interstate voyages from security regulations will jeopardise Australian jobs and the security of the nation.
"At a time when terrorism is at an all-time high and security is a critical issue for our country, I cannot understand why the government would be putting forward such a bill and why Labor would support it," he told the Senate on Wednesday.
Senator Lazarus said the legislation would allow foreign workers to move from port to port without any security assessment.
The Greens also opposed the bill, arguing the case for loosening security had not been made.
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The legislation cleared parliament with the support of Labor.
Government frontbencher Richard Colbeck said the government was committed to boosting the shipping industry and reducing red tape.
He rejected Senator Lazarus' claim that the bill enabled Australian workers to be replaced with foreign workers and insisted the changes would reduce running costs for Australian ship operators.
Senator Colbeck also rejected suggestions the legislation would increase security risks, insisting security would not be compromised.
"There is no increase to a ship's security risk that comes from crossing a domestic state border," he said.
The legislation had no impact on the security arrangements of foreign-flagged ships and several powers were available if a threat were to arise.
