A rare display of political bipartisanship has ensured the flying kangaroo remains mostly Australian owned.
Foreign investors will be able to up their stake but not hold a majority in Qantas after Labor and the government struck a deal to water down ownership rules.
The government had hoped to scrap all limits on the airline's offshore ownership, opening revenue opportunities for Qantas.
But junior transport minister Jamie Briggs said on Friday it was clear the parliament would not accept that move and so the government accepted an opposition amendment.
The revamped Qantas Sale Act insists 51 per cent of the airline remains in Australian hands.
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Caps will be lifted which previously limited single foreign investors to a 25 per cent stake and foreign-owned airlines to 35 per cent.
Qantas headquarters must remain on Australian soil, two-thirds of the airline's board must be Australian, and the bulk of facilities and services including maintenance and storage must remain onshore.
"Qantas has said that while removing (foreign ownership caps) was their preferred outcome they support the amended bill as a step in the right direction," Mr Briggs told parliament.
The changes made for a "safe, fair, competitive and productive" Australian aviation sector.
Opposition Leader Bill Shorten said Qantas was more than just an airline, describing it as an Australian icon employing some 30,000 people.
He is proud parliament worked together to reach a resolution.
"This is how the key problems get solved," Mr Shorten said.
"Labor and Liberal and National - working in good faith and working together on matters of national importance."
But the changes weren't without opposition.
The Australian Greens, the Palmer United Party and ally Motoring Enthusiast Party senator Ricky Muir opposed but did not have the numbers to block the amendments.
