The Federal Government is locked in talks with key Senators, over further changes to the Medicare levy surcharge.
Labor's key budget measure to increase the income threshold on the Medicare levy surcharge has been defeated in the Senate overnight, with the Coalition and Family First voting against the bill.
The Government will introduce a new version of the bill today, setting the threshold to $75,000 for singles, and indexing that threshold as wages increase over time.
Health Minister Nicola Roxon hopes it's enough to change the minds of the Opposition.
“It’s up to the Liberal party now to provide tax relief to 330,000 people.”
But Shadow Health Minister Peter Dutton says that won't be happening.
“We don’t support bad policy.”