The contentious Electoral Finance Act has been repealed under urgency in Parliament.
The legislation passed its third and final reading on Tuesday evening by 112 votes to 9, with the Greens opposing the bill.
The Electoral Amendment Bill repeals the Electoral Finance Act, and puts in place a temporary system while new spending rules are developed.
Justice Minister Simon Power says an extensive consulation period with political parties and the public will now take place.
He expects there will be a new law by the end of next year.
ACT Party MP John Boscawen, who has vehemntly opposed the original legislation, says he is happy to see the back of it.
"It should never have been passed. I now look forward to the new National government receiving submissions from all parties on all sides of the political spectrum and try to come up with a multi-partisan approach to electoral laws," he said.
The Greens' co-leader, Russel Norman, says there was no need to repeal the Act at this stage and the National Party only did it to fulfil an election promise.
But he says the Greens will work constructively to create new election law.
Listen to Chris Bramwell's report