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Abbott baby scheme 'house of cards'

ACTU president Ged Kearney says Tony Abbott's paid parental leave levy would be the first thing scrapped under a strained coalition government budget.

ACTU boss Kearney to contest Batman
Union leader Ged Kearney will nominate for Labor preselection in the Victorian seat of Batman.

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Source: AAP


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The ACTU says the coalition's paid parental leave levy is a "house of cards" and will topple the moment the Australian economy is squeezed.

ACTU president Ged Kearney says opposition leader Tony Abbott's proposed 1.5 per cent levy on 3000 large businesses to pay for his $3 billion a year scheme will probably be the first thing a coalition government will ditch if another GFC hits.

"If you've got a levy on companies they're all going to try to get out of it. They're all going to say, `We can't pay it this year, we can't afford it this year'," Ms Kearney told AAP.

"Come another GFC the government are going to say, `What's the first thing we scrap?' Bet your bottom dollar it will be the levy for paid parental leave."

Ms Kearney also said organising to levy 3000 companies every year would be a legislative nightmare.

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Under coalition policy, mothers would get 26 weeks' parental leave at their full working wage, up to $150,000 per year.

Labor currently offers a base payment of $606 a week for up to 18 weeks.

Ms Kearney said the current scheme isn't brilliant but it works.

"It's easily administered, and it's a good social law as a place to start for employers to top up," she said.

She said women should receive paid parental leave for six months.


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