Medicare levy rise 'fair': Turnbull

Malcolm Turnbull insists the threshold for the government's proposed Medicare levy hike to pay for disability insurance is fair.

Labor is resisting the levy rise, saying it amounts to an increase in tax on low and middle-income earners, forcing the government to negotiate with Senate crossbenchers to fund the national disability insurance scheme.

"The proposal we put is fair, particularly to people on lower incomes because of the way the Medicare levy phases in," the prime minister told reporters on the NSW South Coast on Friday.