The Federal Government's bill to change media ownership and regulation has passed the Senate 31 votes to 27.
The Government secured the support of the Nick Xenophon Team and One Nation to pass the bill.
It scraps restrictions such as the "two out of three" rule, which stops companies owning newspaper, radio and television stations in the same city.
The changes will also abolish the "reach rule", which prevented a single TV broadcaster from reaching more than 75 per cent of the population.
There will also be a change to revenue-based licence fees, which will be replaced by a lower spectrum charge.
Senator Xenophon secured an innovation package for regional and small publishers, worth $60.4 million over three years.
The fund will include money for 200 cadetships of as much as $40,000 each, as well as grants for small publishers that will be capped at $1 million.
"I see this as a down payment for the future of journalism in this country," Senator Xenophon said.
Communications Minister Mitch Fifield said the changes would help Australian media survive in the internet age.
"If you free up a little bit the media control laws that were drafted in the 1980s before the internet existed, you give the opportunity to the Australian media companies to configure themselves in ways to best support their viability," he said.
Labor accuses NXT of 'attack' on ABC
The Government had to rely on support from the crossbench because Labor did not support elements of the legislation.
As part of its agreement with the Coalition, One Nation wants an investigation into the ABC.
Speaking on RN Drive, Labor's Penny Wong accused Senator Xenophon of supporting an "attack" on the national broadcaster.
"Nick could've stopped an attack on the ABC with this legislation and he chose not to," she said.
"I think a lot of South Australians who voted for Nick, who are supporters of the ABC, will be very disappointed."
One Nation wanted the salaries of big-name ABC and SBS employees made public.
Senator Fifield said it was something he was investigating.
"We will be talking to the ABC about how they might do this and it could well require legislation but they are things we will be exploring," he said.
'Better future for Australian stories'
The media industry had been demanding the changes to reflect the changing media landscape.
In a statement, Seven West Media chairman Kerry Stokes said the changes would provide a "better future for local news and Australian stories".
"These historic changes will give Australian media companies a real opportunity to compete with unregulated global players," he said.
Seven West Media chief executive Tim Worner said the changes would allow "broadcasters and publishers to meet the increasing pace of change that we are facing".
Fairfax Media welcomed the changes, saying in a statement that it had "long supported the modernising of media laws to better reflect the current media environment".
Deal includes inquiry into companies like Google, Facebook
It is widely expected the reforms will lead to mergers among large media companies, leading to some fears of reduced diversity of voices and a shrinking industry.
Free TV Chairman Harold Mitchell said while changes in the industry were likely, the diversity of voices will remain.
"It won't shrink the industry, that's not possible — the industry is alive and well," he said.
"I'd imagine a lot [of owners] are lining up now to say that it can be a little different, that might happen and come out of it — but it will go on."
Part of the Government's deal with crossbench Senator Xenophon was to launch an ACCC inquiry into the impact of the new digital environment on the media, particularly that of companies like Google and Facebook.
"I think it's absolutely necessary that we look at Google and Facebook, because in just 17 years digital advertising has gone from 0 per cent to about 40 per cent," Mr Mitchell said.
"There's the question of tax, where the information comes from, what they do in every way, and it should happen very quickly."