Among the measures passed is a law allowing the state to confiscate the valuables of refugees to pay for their stay.
Danish police have been given the power to search asylum seekers and confiscate valuables worth over AUD$2,080 to help cover their housing and food costs while their cases are being processed.
Sentimental items, such as wedding rings, will be exempt.
International human rights organisations, including the UNHCR and Amnesty International, have condemned the measure.
A spokesman for the UN refugee agency, Adrian Edwards, says it sends a damaging message.
"It runs the risk of fuelling sentiments of fear and discrimination rather than promoting solidarity with people in need of protection."
Danish government spokesman Marcus Knuth says the change simply makes asylum-seekers face the same conditions as Danes who apply for unemployment benefits.
"We're simply asking that if asylum seekers - in the rare case where they do come with enough means to pay for themselves - then, following exactly the same rules as for Danish citizens wishing to be on unemployment benefits, if you can pay for yourself, well then you should pay for yourself before the Danish welfare system does it."
Michala Bendixen of Refugees Welcome, a group counselling and supporting refugees, says the focus on seizing valuables has shifted attention away from more serious amendments, such as changing refugees' access to family reunification from one year to three years.
"They will have to wait three years before they can even apply for this and in total it will mean maybe four or five years before they are reunited with their family, which is so serious."
The bill passed with an overwhelming majority, backed by the opposition Social Democrats.
One opposition MP, however, expresses concern about that family reunification extension.
Mette Gjerskov says rather than wait years to get back together, families may now opt to make dangerous water crossings together.
"I'm really, really worried that this will mean that asylum seekers get an incentive to bring their children when they flee themselves, so this means that we have more children in rubber boats in the Mediterranean, and that worries me a lot."
The left-wing Red-Green Alliance was a dissenting voice during the parliamentary debate.
Alliance MP Henning Hyllested says the country's international reputation will be harmed by the decision.
"Denmark was known as a small, humanistic country, which always went in the forefront and found diplomatic solutions. Today we're known for an inhumane, strict policy in relation to immigrants and asylum seekers."
Denmark took in 20,000 refugees last year.
Immigration Minister Inger Stojberg says the country has done a great deal for refugees.
"The argument that Denmark doesn't do its bit - we absolutely do our bit when it comes to refugees in Europe. We absolutely do our bit. It's not a secret that when we stand here today, it is because we wish to take a smaller share."
Denmark is not the only country targeting refugee possessions.
Switzerland has started taking valuables worth over AUD $1,400.
And the German state of Baden-Württemberg secures valuables above AUD$540.
