One of the most generous retirement perks for federal MPs has been axed in a bid to rebuild voter trust following the expenses scandal that claimed the scalp of former health minister Sussan Ley.
Legislation to immediately axe the life gold travel pass for politicians cleared parliament on Thursday night, despite the objections of veteran coalition senator Ian Macdonald.
The new laws mean free travel will be limited to former prime ministers.
New laws to establish an expenses watchdog to hold federal politicians to account over how they spend taxpayer money also cleared parliament.
The watchdog will audit and report on parliamentary work expenses as well as provide advice, monitor and administer claims for travel expenses and allowances by parliamentarians and their staff.
The Senate was forced to sit late into the night after Senator Macdonald staged a one-man filibuster over the gold pass, attempting to move several amendments that were rejected by the chamber.
Greens and other crossbenchers including ex-Liberal Cory Bernardi also attempted to move amendments which were rejected by Labor and the government.
Senator Macdonald objected to the retrospective nature of the gold pass axing, insisting "elderly retired" politicians should not be stripped of an entitlement they were promised in the past.
One Nation leader Pauline Hanson said there were plenty of schools, hospitals and charities that needed the money more than former politicians.
"If we're going to ask the people of Australia to pull their belts in... we as leaders of this nation should show by example," she said.
Special Minister of State Scott Ryan said while retrospective laws were reserved for exceptional circumstances, they weren't unheard of.
"The abolition of the life gold pass decision... that the government and I took over summer is an example of bringing public trust and rebuilding public trust in the expenses framework," he told parliament.
The independent watchdog, expected to be running by mid-year, was one of the most significant changes in a generation, he said.
"(It's) an important step in rebuilding and maintaining public trust in our use of scarce public resources in our job."
Prime Minister Malcolm Turnbull announced the changes in January amid public outrage following revelations senior ministers were using taxpayer funds to attend parties and sporting events.
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