The federal government insists controversial marine park management changes strike a balance between environmental and economic concerns after Labor failed to have the plan blocked.
Labor on Tuesday moved a motion to disallow federal government changes to the regulation of 44 Australian marine parks covering 3.3 million square hectares.
But the motion failed 28 votes to 34 after Assistant Agriculture and Water Minister Anne Ruston slammed the move for putting ideology above science.
The plan will reduce 'green' conservation areas in the Coral Sea from 50 to 25 per cent.
Under the changes, five million recreation fishers will get greater access to Australia's marine parks.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"No government anywhere in the world on land or sea has ever removed this much area from conservation," Labor's water spokesman Tony Burke said in a statement.
"Recreational fishers have now lost the largest 'recreational only' fishing area in the world and large-scale industrial fishing and supertrawlers have now received a standing invitation from the Australian government to exploit Australia's marine life."
But his claims were contradicted by Senator Ruston, who said there was no protections in place to begin with.
She said recreational and professional fishers would have their rights protected by the "balanced" approach.
"We're not rolling anything back," Senator Ruston told parliament.
Greens healthy oceans spokesman Peter Whish-Wilson blasted the changes as diabolical, woeful and a disgrace.
"For Senator Ruston to come in here and say their plans are based on science is absolute claptrap," he said.
But the minister was adamant the opposition to the changes was based on a campaign of "fake news", saying no foreign supertrawlers were expected to come to Australia as a result.
"To call it rank and tawdry xenophobic dog-whistling would probably be the best way to describe it," Senator Ruston said.
