The passing of the bill completes IA’s overhaul and separation from government, with the body now expected to report to an independent board and CEO.

Described as free from political interference, the new IA is tasked with undertaking an audit of nationally significant infrastructure and developing a 15-year plan on infrastructure priorities.

“These reforms will help the Australian government to remain focused on delivering critical infrastructure, ensuring we are getting value for money, maximising productivity and building the infrastructure of the 21st century,” Infrastructure and Regional Development Minister Warren Truss said.

However, the laws also diminish IA’s power by enabling the federal government to fund and deliver some major infrastructure projects without the advisory body’s scrutiny.

A cabinet committee, comprising Truss, Treasurer Joe Hockey and infrastructure and regional development assistant minister Jamie Briggs and overseen by Prime Minister Tony Abbott, was formed in March to drive infrastructure projects across Australia.

It will look at proposals from state governments and the private sector.

The starting date of IA’s new governance arrangements, including the establishment of the board, is yet to be announced.