Medicare levy changes pass lower house

Federal Labor has helped wave through a rise in the Medicare levy threshold for low-income families, praising the government for "rare decency".

The legislation, which includes increasing the threshold for families with a combined income of $35,261, moves it in line with inflation, Assistant Treasurer Josh Frydenberg told parliament on Thursday.

Opposition spokesman Andrew Leigh described the measure as a "rare outbreak of decency" from the coalition, as he gave the bill bipartisan support.