The controversial cashless debit card is destined for the scrapyard, paving the way for thousands in remote communities to come off the card next week.
The repeal bill passed its final parliamentary hurdle on Wednesday after the Senate sat late into the night to pass the amended bill.
The Greens and independent senators David Pocock and Jacqui Lambie voted with the government to repeal the card.
Social Services Minister Amanda Rishworth said the crossbench amendments helped strengthen the legislation.
"These amendments came from extensive consultation," she told parliament as the bill returned to the lower house.
"These are sensible amendments, they do improve the bill. They are a result of listening to communities."
Amendments included ensuring voluntary access to the card.
The bill's passing clears the way for welfare recipients on the card to come off it by October 4.
The cashless debit card quarantines up to 80 per cent of a welfare recipient's income, which cannot be withdrawn in cash or spent on gambling or alcohol.
Ms Rishworth earlier said the card hadn't worked and it was "time to give people their autonomy back".
"So many people's lives were adversely affected because they couldn't access enough cash ... to be able to live their life," she told the ABC.
Senator Pocock said while all mandatory income management needed to be abolished, the bill was an important first step.
The opposition voted against scrapping the card, arguing it would lead to an increase in drug use and violence in vulnerable communities.
Liberal senator Linda Reynolds said reducing access to drugs, alcohol and gambling had "significantly reduced alcohol and drug abuse, assaults, rapes and murder".
Senator Reynolds said Labor's opt-in approach wouldn't work for women being coerced to provide money to abusive partners.
Senator Lambie said the government had failed to put in place enough support services to help people transition off the card.
"All I get from the Labor Party is a heap of silence and a stupid look of 'I don't know' on their face," she said.
