A leading business group has slammed the federal opposition's proposed paid parental leave scheme, describing it as poor policy.
The Australian Industry Group, which represents the interests of 60,000 businesses employing 1.2 million staff, said the plan to tax big companies to pay for the scheme would deter investment and cause a bias towards male employment.
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"On any measure this is bad parental leave policy and it's bad tax policy," chief executive Heather Ridout told ABC Radio on Tuesday.
"We just can't afford this kind of operation. On any measure it's poor policy."
The opposition wants to impose a 1.7 per cent levy on big business to fund a more generous program than the government's 18-week scheme paid at the minimum wage.
Ms Ridout said Labor's plan was simple and had been adopted after extensive discussion between business, unions and the Productivity Commission.
She doubts the seriousness of the opposition plan.
"I don't know who thought this up but they are not a rocket scientist."
