A DEFIANT Tony Abbott has dismissed backbench concerns that his "Rolls-Royce" paid parental leave scheme will assist the rich, while funding for a new deal for the disabled remains uncertain.
The Coalition leader slapped down concerns raised by Victorian Liberal Russell Broadbent and Queensland senator Sue Boyce, declaring that he was "welded" to the scheme, to be funded by a levy on big business. "If you think we're back in the days of the Hills Hoist and the Victa mower, we're not," Mr Abbott told yesterday's joint party room meeting.
Mr Broadbent said he had been dealing with the disability sector for 35 years and it had the impression that, if the Coalition was cutting spending and reducing waste, there would be no money for the proposed National Disability Insurance Scheme.
He said he struggled to explain to constituents that the Coalition was committed to an "extravagant" paid parental leave "for rich people", while it did not have the money for a disability insurance scheme.
Mr Abbott hit back that the paid parental leave scheme to cost more than $2.7 billion a year would be met by a levy on business. "It's not a welfare measure it's a workplace entitlement," he insisted.
The comments came after the shadow treasurer, Joe Hockey, made it clear that the Coalition would want to be satisfied that the budget bottom line was in order before allocating money to such areas as the disability insurance scheme.
Mr Hockey told the party room he wanted to set out the "parlous" state of the budget, with a Liberal source explaining afterwards that he was frustrated by a view there is an endless pit of money.
The tensions come as the Coalition begins the process of testing the costs of its promises.
While Mr Abbott's parental leave scheme is a signature policy, it is unpopular with business and there is a strong view within the Coalition that something more modest would be more appropriate.
Senator Boyce described it as a "Rolls-Royce scheme" when in the current environment the Coalition should be considering something "more like a Holden". One suggested compromise would be to include superannuation contributions in Labor's more modest scheme.
Various Coalition MPs are concerned the government is presenting the disability insurance scheme as its own, when the Coalition supports the idea.
One prominent Liberal moderate, Judi Moylan, who is a strong backer of the disability insurance scheme, supported Mr Abbott's approach on parental leave, saying it would help maintain productivity by ensuring continuity of employment.
Community Services Minister Jenny Macklin seized on the divisions within the Coalition, saying: "The Coalition is so deeply divided they will never deliver Tony Abbott's pie-in-the-sky scheme, which he plans to fund by whacking a great big new tax on Australian businesses."
THE TWO SCHEMES
GILLARD
18 weeks paid leave at minimum wage (about $590 a week).
Either parent eligible.
Primary carer must earn $150,000 or less a year.
Will cost $260 million a year out of general revenue.
Does not include superannuation.
ABBOTT
26 weeks paid leave on full pay, up to $75,000.
Either parent eligible.
Will cost around $2.7 billion, to be paid for by a tax on Australias top 3200 companies.
Does include superannuantion.
Frequently Asked Questions about this Article…
What does Tony Abbott's proposed paid parental leave scheme include?
Tony Abbott's plan proposes 26 weeks of paid parental leave on full pay, capped at about $75,000 a year. Either parent would be eligible, and the proposal includes superannuation as part of the benefit.
How much will Abbott's paid parental leave scheme cost and who will pay for it?
The scheme is estimated to cost around $2.7 billion a year (the article states it will cost more than $2.7 billion). Mr Abbott has said it would be funded by a levy or tax on big business — specifically on Australia's top 3,200 companies — rather than from general government revenue.
How does Abbott's paid parental leave compare to Julia Gillard's scheme?
The two schemes differ significantly: Gillard's plan offers 18 weeks paid at minimum wage (about $590 a week), is paid from general revenue at around $260 million a year, does not include superannuation and limits the primary carer to those earning $150,000 or less. Abbott's proposal offers 26 weeks on full pay up to $75,000, includes superannuation, costs roughly $2.7 billion and would be funded by a levy on large companies.
Who in the Coalition supports or opposes Abbott's parental leave plan?
There are divisions inside the Coalition. Some MPs, including Russell Broadbent and Senator Sue Boyce, have expressed concerns — Boyce described it as a 'Rolls-Royce scheme' and urged something more modest. Business groups are also unpopular with the plan. However, some Liberals like Judi Moylan back Abbott's approach, saying it helps maintain workforce continuity and productivity.
Will the paid parental leave plan affect funding for the National Disability Insurance Scheme (NDIS)?
The article says funding for a National Disability Insurance Scheme remains uncertain and has been a point of tension. Russell Broadbent warned that cutting spending could leave no money for the proposed NDIS, and shadow treasurer Joe Hockey said the Coalition wants to be satisfied the budget bottom line is in order before allocating money to schemes like the NDIS.
Is Abbott's paid parental leave described as welfare or a workplace entitlement?
Mr Abbott insisted the parental leave proposal is 'not a welfare measure' but a workplace entitlement. He argued it is an employment-related benefit rather than traditional welfare.
Which businesses would be targeted by the levy to fund the scheme?
Abbott has indicated the cost would be met by a levy on big business — specifically a tax on Australia's top 3,200 companies, according to the article.
What political obstacles could delay or change Abbott's parental leave policy?
Several obstacles were noted: internal Coalition divisions over the scheme's size and cost, strong business opposition, and scrutiny from the Coalition's own budget hawks like Joe Hockey who want to ensure the budget can fund promises. Opposition politicians such as Community Services Minister Jenny Macklin have also criticised the plan and highlighted the party's divisions, which could make delivery difficult.
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