Abbott defends parental leave plan | National News | Breaking National News in Australia

Federal Opposition leader Tony Abbott.

AAP

TONY Abbott is staunchly defending the coalition's new paid parental leave plan against business criticism that it is bad policy.

The Australian Industry Group, which represents the interests of 60,000 businesses employing 1.2 million staff, says the plan to tax big companies to pay for the scheme will deter investment and cause a bias towards male employment.

The opposition wants to impose a 1.7 per cent levy on big business to fund a more generous program than the government's 18-week scheme paid at the minimum wage.

"I am determined to give women a better chance in the workforce, not to make it more difficult for them," the opposition leader told ABC Radio on Tuesday.

Mr Abbott said he did not expect everyone would applaud the plan.

"And certainly I didn't expect that the groups that will pay a heavier burden would necessarily cheer at that prospect," he told Macquarie Radio Network earlier.

"If you go back to all sorts of things that are now accepted as part and parcel of life - holiday pay, sick pay, superannuation - business was against them as well."

Mr Abbott said business groups had presented acceptable arguments against a plan he described as "pro-family, pro-women, pro-children".

"In the end, we rejected them and moved on, and business moved on as well."

"If we are going to have a fair go for families we have got to make it possible to combine motherhood and having a job.

Small Business Minister Craig Emerson denied the coalition had outflanked Labor on paid parental leave.

"No, not at all," he told Sky News, adding voters would decide which side of politics was more family friendly.

"Our scheme is a more financially responsible scheme."

Opposition treasury spokesman Joe Hockey said the coalition believed business had the capacity to pay for the scheme.

"Paid parental leave is essential if we want to grow the economy, build the government's coffers and be able to afford to deliver tax cuts in the future," he told reporters in Canberra.

Frontbench colleague Sharman Stone said any scheme needed to include at least six months of leave to get women back into the workforce.

"We have big business in Australia doing quite nicely thank you very much when you look at the profits of the banks and others in the finance and mining sector," she said.

Ms Stone denied the plan represented a new tax.

"We are calling it an investment in human capital," she said, adding it should have been done a very long time ago.

The Australian Greens are backing the coalition plan.

"Go Tony, it's a good policy," party leader Senator Bob Brown told reporters in Canberra, adding the coalition had stolen a march on Labor.

He described as "anti-women" business criticism of the plan.

Nationals senator Fiona Nash said the plan would be discussed at a meeting of the joint coalition parties later on Tuesday.

"I want to be absolutely sure that those mums or dads who choose to stay at home with their young children are recognised and assisted through any measures we're putting in place to help families," she said.