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Coalition unveils paid parental leave

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Abbott-led government would pay new mothers up to $75,000 over six months but Labor says policy unfairly favours wealthy

A Coalition government would pay mothers who give birth after July 2015 up to half of their annual salary under its paid parental leave scheme – while Labor has unveiled a plan to cut family benefits for parents who refuse to vaccinate their children.

The two family-based policies were unveiled as the nation enters the third week of the federal election, with the Coalition ahead in the polls.

Tony Abbott, the opposition leader, made his paid parental leave (PPL) policy a centrepiece of the Liberal party platform while facing some opposition to it from within his own party.

The policy provides mothers with 26 weeks' paid leave based on their earning capacity, capped at a salary of $150,000 a year, providing maximum leave payments of $75,000. The scheme also includes superannuation. Fathers will be eligible for two weeks' leave at their wage.

Labor introduced a PPL policy in its last term that provides 18 weeks' paid leave based on the minimum wage.

The Coalition's plan will be paid for by a 1.5% levy on companies making more than $5m in taxable income – estimated to be around 3,000 companies. The coalition has previously announced a company tax cut of 1.5%.

Also on Sunday Labor released details of changes to its vaccination policy, which cuts out the Family Tax Benefit A payment annual supplement worth $726 per child for those eligible parents who register as "conscientious objectors".

Although government policy requires all children to be vaccinated, parents who refused to vaccinate their children could claim exemptions for religious, medical or ideological reasons, listed as "conscientious objections".

Vaccinations cover childhood diseases such as polio, measles, whooping cough and rubella.

Under the new policy exemptions will only be allowed for religious and medical reasons.

Abbott, known for being socially conservative, said he had changed his view on PPL, which he referred to as a "signature Coalition policy".

"I am a convert and that's why I have a convert's zeal," Abbott said.

"I've been on a journey on this [PPL]. Ten years ago you would not have seen me announcing a policy like this.

"Australian men and women receive a replacement wage when they are on annual leave, sick leave and long service leave. We believe it is right for a mother to receive her full wage while on parental leave."

The prime minister, Kevin Rudd, said Labor had been the party to introduce paid parental leave after 12 years of Liberal government. "We bought in first [the] paid parental leave policy which benefited 300,000 Australian families," Rudd said. "Tony Abbott is pretending to give on paid parental on the one hand but take by cutting the school kids' bonus."

The health minister, Tanya Plibersek, said the Coalition PPL scheme was not fair and ultimately all people would end up paying as large companies passed on the costs.

"It's still a tax that all of us pay," Plibersek said. "If Coles pays the tax you will pay at the cash register. If Woolworths pay the tax you will pay at the cash register."


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