The law was in place for eight years before a Whanganui stabber received the maximum penalty. All judges in earlier cases nationwide said maximum terms would be manifestly unjust.
Labour first attempted to repeal the law in its first term but was blocked by NZ First.
At the third reading of the repeal bill today Justice Minister Kiri Allan said the law had led to some "extremely concerning sentencing outcomes" and there was "little evidence" it had worked as a deterrence.
Allan said serious and repeat offenders would still be held to account, but discretion would go back to the judiciary.
National Party opposed the bill, justice spokesman Paul Goldsmith saying they would bring back legislation to replace it if elected.
Goldsmith said the purpose of the law was to keep those "serious repeat offenders out of circulation for longer to keep the community safe".
He quoted a submission that stated after 10 years, 13,000 people had been delivered their first strike.
"If it had no effect, it's surprising that only 640 have had their second strike and only 21 have had their third strike.
"On average, the people who have had three strikes have had around 70 offences each
"This law was designed to take these third strike offenders out of circulation to reduce the number of victims, to give the victims a break. Victims are still scared to go out at night."
Goldsmith said with reports of increasing gun crime in Auckland the Government was "wholly out of touch" to reduce prison sentences.
Green Party MP Dr Elizabeth Kerekere said they supported repealing the law, which was "punitive rather than restorative justice and rehabilitation".
"It ignores what rehabilitation and successful reintegration of that person safely back into the community might look like.
"Most importantly, three strikes has resulted in disproportionate and excessive sentences being handed down."
Kerekere referred to a submission from the Prison Education Project, which stated the arbitrary nature of the law prevented the court taking into account factors such as age, cultural background and mental or physical health issues.
"Meaning that members of vulnerable populations, such as our youth, mentally ill or Pasifika populations, are more likely to be disproportionately affected."
The party was disappointed the bill would not relook at those sentenced under the law, including resentencing and offering compensation.
"We believe that people who have been made subject to a third strike should have their sentence reconsidered by a judge. "
