The National Assembly on Wednesday approved the Division of Revenue Bill with 211 votes to six.
The measure, which provides for the equitable division of revenue between national, provincial and local government and was tabled by Finance Minister Tito Mboweni along with the 2019 national budget, was opposed by the official opposition.
The Democratic Alliance (DA) left rows of empty seats in the National Assembly, which meant a narrow quorum for the the chamber to pass the bill.
Arguing in favour of the bill, Deputy Finance Minister Mondli Gungubele said the DA was in denial about its failure to match the African National Congress's track record on job creation in areas where it governed at local government level.
The bill is part of a raft of legislation, reports and other important business Parliament is finalising in the last days of its lifespan before the May national and provincial elections.