The government has rejected Senate inquiry conditions calling for changes to the Australian Noise Exposure Forecasts (ANEF) used to determine which house are eligible for publicly-funded insulation.
Perth homes near the flight path lie outside the noise contours determined by the ANEF so miss out on government-provided insulation.
The government also rejected a recommendation that it should review changes to the Western Australian flight path.
The Senate inquiry was prompted by concerns from residents about aircraft noise and flight path changes at Perth Airport.
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Stakeholders including resident Karen Ward told the inquiry that the noise and flight changes were affecting their family's quality of life.
"We have experienced and are continuing to experience aircraft flying directly overhead and when the windows are opened or when we are outdoors the smell of benzine triggers off asthma attacks," Ms Ward said.
"Not only do we get the noise in the daytime but often we are awoken by loud aircraft noise taking off after midnight, after 2am and then quite regularly anytime from 5am onwards."
Yvonne Renshaw from Somerville Ecovillage said the flight path was affecting her business and feared her property would be devalued.
On Wednesday Mr Albanese, whose Grayndler electorate lies just outside Sydney Airport, defended the decision not to insulate the affected Perth homes.
"I can't fund insulation ... in someone's street but not in someone else's on the basis of something other than science," he told ABC Radio.
"Certainly there's a great deal of frustration in ... the majority of my electorate (where) the overwhelming majority do not have insulation."
Mr Albanese said he would welcome any input about an appropriate alternative noise measuring systeme.
The government's Aircraft Noise Insulation Programs are implemented in suburbs close to Sydney and Adelaide airports.
The ANEF system was established in 1980 and measures the intensity, duration, tonal content and spectrum of audible frequencies of aircraft noise during take offs, landing and fly-overs.
MP Steve Irons, whose Swan electorate encompasses Perth airport, slammed the government's "weak response" and said the ANEF needed to be changed.
"It is considered by many to be outdated and to under-estimate real noise in the community," Mr Irons said.
"The measure clearly underestimates the extent of the noise problem in Perth yet the government has used it to deny Perth noise amelioration measures."
