The restructuring of Tony Abbott's paid parental leave scheme shows a prime minister in deep trouble and a treasurer with new problems, Labor says.
Joe Hockey is now in the final stages of preparing the mid-year economic and fiscal outlook, due for release mid-December, without knowing the size or scope of the proposed paid parental leave scheme.
"Joe Hockey is supposed to be announcing a mini-budget next week - how much is Joe Hockey going to have in his mini-budget as the cost for Tony Abbott's PPL scheme?" Opposition Families spokesperson Jenny Macklin told reporters Melbourne on Sunday.
"It is supposed to start in next July but we have no legislation, and now it is clear the government has no idea what they are actually going to do."
Federal Labor leader Bill Shorten said the backdown signalled critics of the government's PPL scheme were right to say it was unfair.
"This is not about Tony Abbott changing his policies because he is admitting he is wrong," Mr Shorten also said.
"This is about Tony Abbott changing his tactics because he is in deep political trouble with his colleagues and the nation."
Mr Abbott has announced his signature PPL scheme will be restructured, and could include investment in childcare, in a bid to gain cross-party support.
Labor also said the government had cut $1 billion in childcare-related funding, and so any PPL-related childcare investment should at least match this.
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