The federal coalition may consider following Labor's lead to deter "conscientious objectors" from vaccinating their young children.
A re-elected Labor government would withhold Family Tax Benefit Part A supplements worth about $2000 from parents who shun vaccinations.
The policy ups the ante on Labor's 2012 immunisation reform, which required guardians to justify in writing their reason for not vaccinating their kids.
"We need to close that loophole," Prime Minister Kevin Rudd said in Sydney on Sunday.
Only a small group of children would be exempt, on medical or religious grounds.
"It's a hardline position," Mr Rudd said.
"I want to build an Australia where every mum and dad can feel safe and confident that when their kids go to school that practically every kid in that school is going to be immunised."
Health Minister Tanya Plibersek said Australia had some of the best immunisation rates in the world but could do better to prevent the future incidence of preventable diseases.
"A lot of Australians have forgotten what diseases like whooping cough and measles and chicken pox look like, they think they are simple childhood illnesses," she said.
"They are not. They're diseases that can kill people."
She said only a tiny number of families would qualify for an exemption.
The plan appeared to have broad political support with Opposition Leader Tony Abbott saying while he wanted more details he wouldn't "be too critical".
"We're disposed to support reasonable measures that will get vaccination rates up," he said.
Ms Plibersek rejected Mr Abbott's claim it was Labor that had allowed vaccination rates to slide.
Rates had increased from 83 per cent for five-year-olds in 2007 to 90 per cent now, Labor said.
"Get your facts right," Mr Rudd said.
Of concern has been the rising number of parents rejecting childhood accusations based on misinformation about their effectiveness or necessity, which Labor is trying to address.
The Australian Medical Association (AMA) said vaccinations saved lives.
"It is appropriate to provide incentives to parents," AMA president Steve Hambleton said.
"It is important, too, that governments and health authorities continue their efforts to control groups that circulate lies and misinformation about the benefits to the community of vaccination."
Australia Greens deputy leader Adam Bandt said he supported Labor's decision.
