Federal Labor says the coalition's plan for a generous paid parental leave scheme is at risk. Source: AAP
THE Rudd government has accused shadow treasurer Joe Hockey of casting fresh doubt on the coalition's plan for a generous paid parental leave scheme.
Opposition Leader Tony Abbott has said the "signature policy" will be paid for by a 1.5 per cent levy on 3000 big companies.
But asked about the policy during a debate with Treasurer Chris Bowen on morning television on Friday, Mr Hockey said: "Well how do you know we're going to increase company tax?"
When Mr Bowen asked him to clarify whether the coalition will increase company tax, Mr Hockey said "Well, you watch. You watch what we do."
The government quickly issued a statement pointing to Mr Hockey's lack of commitment.
"Time after time, Joe Hockey and his colleagues have refused to back Tony Abbott's 'signature policy' and have suggested it will be dumped," Assistant Treasurer David Bradbury said.
"With the internal division in coalition ranks on this unfair and unaffordable policy, it's no wonder Tony Abbott and Joe Hockey can't say when and if it will be delivered."
The coalition plan would see women paid for 26 weeks at their full annual salary of up to $150,000 per year.
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