Tony Abbott is so keen to get his paid parental leave (PPL) scheme into law he's bowed to voter pressure and is working on a plan that will deny it to women earning more than $150,000 a year.
Mr Abbott told reporters on Sunday the scheme would be changed, with the government revising the costings over summer.
But prime minister wouldn't be drawn on the specifics of the new package.
Media reports say the government is working on a plan that will mean women earning more than $150,000 a year won't be eligible.
The prime minister said he believes the PPL combined with affordable childcare will get more women into the workforce.
"Paid parental leave will be refined so that help is better targeted towards the hundreds of thousands of low and middle income families across Australia," he said.
The rejigging of Mr Abbott's scheme, which is still to be funded by a 1.5 per cent impost on big business, would see the current payout cap of $50,000 lowered, a new means test and the redirection of money to childcare.
This means those who use carers working in the family home, such as nannies and family daycare workers, would be eligible for the 50 per cent rebate.
"It will be a better targeted scheme. The savings we make will be invested in childcare," Mr Abbott said.
"My message to those who support the paid parental leave scheme is: This is our time to get it right. This is the time to do the right thing [and] to do it a way that is fair and reasonable and that particularly supports small business."
He said the finer details of the restructured scheme will be considered over the summer break.
Jo Briskey from the family lobby group The Parenthood said working parents want support for childcare.
"That's going to be of real interest to our members. We found that over 80 per cent of parents participating in our surveys say that quality education is more important to them than more funding for paid parental leave," Ms Briskey told the ABC.
Recommendations from the Productivity Commission to redirect funds from the PPL into childcare are believed to be behind the prime minister's change of heart - together with the need to win over a hostile Senate.
The existing parental leave scheme, introduced by Labor, offers 18 weeks pay at minimum wage and does not include superannuation.
The government's proposed scheme provides working mothers with six months leave on full pay and includes super.
