Prime Minister Kevin Rudd has warned of job and health service cuts to pay for the coalition's generous paid parental leave scheme if the opposition wins the election.
Opposition Leader Tony Abbott has formally unveiled his $5.5 billion paid parental leave scheme to give working women six months leave on full play plus super for each baby born after July 1, 2015.
It will be capped at $75,000.
Some 3000 companies earning more than $5 million in taxable income a year will pay a levy of 1.5 per cent to fund the scheme, although this will be offset by a corporate tax cut for all businesses from mid-2015.
On Monday, Mr Rudd defended the federal government's 18 week scheme, paid as a welfare entitlement at the national minium wage - $622 a week pre-tax.
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He said it's affordable and had so far supported 300,000 families.
"The problem with Mr Abbott's scheme is that he cannot fund it unless he cuts jobs, health and hospitals," he told the Seven Network.
The school kids bonus would be scrapped under the coalition as well, Mr Rudd said.
"It's a bit like giving to some people on one hand but taking a whole lot more with the other," he said.
Economists believe the coalition's scheme is not costed properly and won't achieve the policy objectives of increasing women's participation in the workforce, Mr Rudd said.
