Religious groups will get an exemption from a new levy for bringing foreign workers into Australia, with the money to be pumped into a new training fund.
Legislation passed the Senate on Tuesday to establish the Skilling Australians Fund to pay for trade training and apprenticeships, a measure from last year's budget.
The bill passed the upper house hours before the 2018/19 budget, which revealed religious organisations would be exempt from paying the levy that is predicted to raise $1.2 billion over four years.
Employers will pay up to $1800 per year for each temporary foreign worker they hire and $5000 for each permanent worker.
While the government said it would put $250 million of new funding into the program, Centre Alliance senator Stirling Griff claimed the fund would be short-changed by $105 million.
"The government knew about the shortfall of funds for the levy but did not share this with senators who were asked to vote on the bill today. That's pretty poor form," Senator Griff said in a statement on Tuesday.
The left-over budget measure was supported by Labor despite the opposition's criticism of the government's handling of the sector.
"This is a government that is completely out of touch in relation to vocational education and training," Labor senator Doug Cameron told parliament.
The bill has to return to the lower house to approve amendments, including Centre Alliance's requirement the fund be reviewed within 18 months of becoming law.
The Greens unsuccessfully tried to exempt universities from the levy, with Senator Sarah Hanson-Young arguing it was a "tax on knowledge".
