The Australian National University will be given primary responsibility for the Anglo-Australian Telescope at the NSW Siding Spring Observatory near Coonabarabran.

They'll run it until the end of its operational life in 2024-25, while responsibility for Australia's world-renowned optical instrumentation capability will transfer to Macquarie University in partnership with ANU and the University of Sydney.

Federal Labor MP Peter Khalil said that for decades Australian astronomers and scientists had been able to "boldly go where no one has gone before".

"Reaching out to the stars with their eyes, with their ears, with the instruments they use to ask the most deep and most meaningful questions that human beings have always asked - are we alone? What's out there?," he told parliament in Canberra on Tuesday.

Legislation to allow the transfer passed parliament's lower house on Tuesday.

Assistant Home Affairs Minister Alex Hawke said it was part of a 10-year partnership with the European Southern Observatory, giving Australian astronomers access to world-class optical-infrared telescopes in Chile.

In the first year Australians have had a 38 per cent success rate on research proposals, and more than 300 hours access to the 8.2-metre Very Large Telescope at Paranal, Chile.

"This is a remarkable achievement for Australia's inaugural observing period. It confirms the strong international standing of Australia's astronomers," he said.

Australian Associated Press