Tony Abbott admits the personal transition from his signature paid parental leave to limiting access to a taxpayer-funded scheme has been "a bit of a wrench".
But the prime minister believes ending "double dipping" and redirecting the savings, which will leave nearly 80,000 new mums worse off, will ultimately benefit the country.
"If you've got a massive surplus, you can do more than you can if you've got a significant deficit," he told reporters in Canberra, referring to the government's planned $3.5 billion boost to childcare support.
From July next year, the taxpayer-funded paid parental leave scheme will only top-up employer payments to $11,500 - the maximum payable.
At the moment, new parents can get whatever paid parental leave their employer provides plus access the government scheme of 18 weeks at the minimum wage.
"It's a matter of making sure that the opportunity available to all women is the same," Finance Minister Mathias Cormann said on Monday.
"It's an equity and fairness measure."
About 79,000 new mothers will lose the government-funded paid parental leave either completely or partially under the changes.
Another 90,000 won't be affected because their employer doesn't offer paid maternity leave.
The measure is expected to save the budget $1 billion over four years.
Senator Cormann says the government doesn't regard the existing Labor-designed scheme as one that should compliment workplace offerings.
Nor does he believe employers will diminish leave arrangements if the government makes its change.
But opposition families spokeswoman Jenny Macklin, the architect of the existing scheme, says employers already have indicated their schemes will be slashed.
Independent senator Nick Xenophon said many employers had factored in the government's scheme when deciding how much paid leave to offer new mothers.
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