Parental pay needs strong economy: senator

The commission of audit have said the government's proposed paid parental scheme is too generous. Source: AAP

A GOVERNMENT senator warns he'll have problems with Prime Minister Tony Abbott's signature paid parental leave policy unless it's held over until the economy is stronger.

Senator John Williams' comments come as the audit commission reportedly told the government the scheme is too expensive in light of the budget's unhealthy position.

Mr Abbott is emphatically sticking by his plan.

The scheme, planned to begin in July 2015, will cost about $5.5 billion a year.

"I don't have a problem with the scheme so long as we have a strong economy," Senator Williams told reporters in Canberra.

"To me a strong economy is when you have a four in front of unemployment - we've now got a six in front of the figure ... and I like to see economic growth in a strong economy up around that four level.

"If it's not that strong then yes, I will have some concerns with it."

Unemployment is now at six per cent while economic growth is about 2.5 per cent.

Pressed on whether he would cross the floor on the issue, Senator Williams said only that he would be telling Mr Abbott his position before the media.

Labor seized on the comment, saying Mr Abbott was the only supporter of the generous scheme to give working mothers full pay for six months of leave, capped at $75,000.

The existing parental leave scheme pays the minimum wage for 18 weeks.

"This is a mighty social and economic advance for the women of Australia," Mr Abbott told parliament in defending his policy.

"I think one day members opposite will be a little embarrassed ... by the stance that they have taken on this policy."

He would not abandon the plan no matter what the commission of audit recommended.

"You shouldn't need a commission of audit to tell you that Tony Abbott's paid parental leave promise is not sustainable," Labor's finance spokesman Tony Burke told Sky News.

The Australian Greens support the principle of wage-replacement parental leave but want the government to cap the top payment at $50,000 for six months.

Senator Williams said that since the government would have to negotiate with the Greens to get any new scheme through the Senate, it was impossible to tell what form it might eventually take.

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