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Schools, parental leave help economy: PM

The federal government will deliver disability insurance, paid parental leave and extra schools funding, says Prime Minister Tony Abbott.

Prime Minister Tony Abbott
(AAP)

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Source: AAP


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Prime Minister Tony Abbott says he remains committed to disability insurance, extra schools funding and a multi-billion dollar paid parental leave scheme.

This week's mid-year economic and fiscal outlook - showing slowing economic growth, a $47 billion deficit and rising unemployment - has triggered a debate over whether three of the coalition's most expensive election promises are affordable.

Mr Abbott's signature paid parental leave already has its critics within the Liberal-National coalition, with some MPs saying it's too generous and favours city dwellers over families in regional areas.

"If they are done right, all of these things will actually strengthen our economy - but I stress, if they are done right," Mr Abbott told Adelaide radio 5AA on Thursday.

He repeated the additional spending on paid parental leave would be covered by a levy on big business.

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The prime minister played up the productivity benefits to flow to the economy in the medium to long term from extra schools and the national disability insurance scheme.


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