The federal government has agreed to compromise on its plan to increase the Medicare levy surcharge threshold by raising the rate for singles to $75,000 instead of $100,000 as originally planned.

“Having consulted and having listened we are prepared to take a sensible approach to this matter and to the wishes of the Senate,” Health Minister Nicola Roxon told parliament today.

“In the other place (the Senate) this afternoon we will propose new thresholds of $75,000 for singles, while retaining our original proposal for couples at $150,000.”

The coalition had indicated it would oppose Labor’s original bill in the upper house.

Opposition Leader Malcolm Turnbull should now vow to support the changes, Ms Roxon said.

“This measure will then deliver immediate tax relief to 330,000 Australians, a significant number of working families.”

The health minister said while that wasn’t as many “as we would have liked to deliver relief to” the compromise was required due to the position of the Liberal Party and the Senate.

“It’s a pragmatic response following a Senate inquiry and much consultation.”