A controversial bill to ban cash payments over $10,000 and impose two-year jail sentences on those caught using cash above that limit is poised to pass Federal Parliament despite bitter divisions within both major parties.

The Morrison government is set to win support from Labor to legislate the controversial crackdown, which is likely to be opposed by the entire Senate crossbench from the Greens to One Nation.

A controversial ban on cash purchases over $10,000 is set to pass Parliament despite unrest among government MPs. Credit:Louise Kennerley

The proposal has been criticised by tradespeople, pensioners and some ethnic communities, with government MPs reporting a fierce backlash from within their own branches over the laws.

Some Labor MPs have also expressed reservations over the laws, aimed at cracking down on crime syndicates that launder money through the black-market economy.