The shift comes after the general aviation industry raised concerns about the costs sometimes associated with fresh regulations.

Legislation making the change to the Civil Aviation Safety Authority passed the lower house on Thursday, after clearing the Senate in July.

"The Australian government is very conscious of the challenges faced by small business in Australia, and the need to remove unnecessary costs and regulatory burden," assistant minister Andrew Gee told the chamber on Thursday.

"It is important that we continue to support an aviation industry which is dynamic and sustainable."

Mr Gee insists safety in the industry will always be the most important consideration.

Labor backed the change, believing it strikes the right balance between keeping people safe and address the concerns of the aviation sector.

"While we understand that there will always be groups that say the balance is completely wrong one way or the other ... on balance, we are supporting this bill," Labor MP Catherine King told parliament.

Some commercial pilots had feared the changes could lead to weaker safety standards in favour of profits, but smaller industry players backed the bill because it aims to reduce costs.

Australian Associated Press