16/08/2017 10:05 PM AEST | Updated 16/08/2017 10:15 PM AEST

Turnbull Government Confident Of Shock Medicare Levy Deal With Senate

Stefan Postles via Getty Images
CANBERRA, AUSTRALIA - MAY 10: Treasurer Scott Morrison speaks to Prime Minister Malcolm Turnbull during question time at Parliament House on May 10, 2017 in Canberra, Australia. The Turnbull Government's second budget has delivered additional funds to education, a plan to assist first home buyers, along with a crackdown on welfare. (Photo by Stefan Postles/Getty Images)

The Turnbull government is optimistic it can strike a shock deal with the Senate crossbench and pass the $7.8 billion Medicare levy, one of the centrepiece measures of the 2017 budget.

In a move that defies predictions the 0.5 per cent levy rise would stall in the Senate - and possibly be put on ice until after the next federal election - Treasurer Scott Morrison will on Thursday bring the bill to the Parliament.