Victoria's Independent Broad-based Anti-Corruption Commission will be given a broader remit to probe corruption across the public sector.
The laws, which grant the agency "follow the money" investigative powers, cleared state parliament on Thursday, its final sitting day before the November election.
Premier Ben Carroll vowed to bring some of the reforms forward after toppling his predecessor Jacinta Allan in July.
"Labor has given IBAC the powers it needs to clamp down on corruption," Mr Carroll said in a statement on Thursday.
"We are making sure public money is spent properly and Victoria is led with transparency."
Integrity experts have previously warned IBAC could only investigate corruption in specific circumstances, excluding so-called grey corruption.
The law broadens the definition of corrupt conduct to include serious disciplinary matters, including behaviour that does not constitute a criminal offence.
This extends to the conduct of elected officials, including ministers, MPs and local councillors.
It has also been granted the power to trace public money given to non-government bodies, including private and third-party contractors.
The Victorian Greens celebrated the reforms, which were championed by Greens MP Tim Read, who died just days before the bill passed.
The 64-year-old Member for Brunswick and integrity spokesperson died following a battle with metastatic cancer.
"Make no mistake, this IBAC reform would not be happening today if it weren't for Tim," Victorian Greens leader Ellen Sandell said in a statement.
"Victoria will now have much stronger anti-corruption laws due to the the Greens forcing the government to accept these key amendments and changes."
The legislation cleared parliament just a day after the royal commission into alleged corruption on major public projects held its first hearing.
Victorians will go to the polls on November 28.
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