Parental leave double dipping not fair: PM

Prime Minister Tony Abbott has told parliament it's not fair for new parents to be double dipping on paid parental leave at this time.

Joe Hockey says concerns employers may dump their own paid parental leave schemes are ridiculous. (AAP)

It's not fair to have parents "double dipping" on paid parental leave at this time, Tony Abbott has told parliament.

Tuesday's federal budget will stop new parents using whatever leave their employer provides plus access to the government scheme of 18 weeks at the minimum wage, saving $1 billion over four years.

The prime minister, who conceded in question time to having got a few "political bruises" from his commitment to paid parental leave, said that practice was not fair in these circumstances.