The Search and Surveillance Bill is one step closer to becoming law.
The legislation passed its second reading on Thursday night by 61 votes to 59, with National, ACT and United Future voting in support.
Justice Minister Judith Collins says the legislation brings search and surveillance powers up to date with 21st century technology while safeguarding human rights.
Labour and the Green Party disagree, saying it compromises media freedoms and the rights of family members or partners to give evidence against the accused.
