Social Services Minister Christian Porter has conceded the government will not be able to pass cuts to paid parental leave before the federal election, granting a reprieve to working mums expecting babies after July 1.
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But in a sign paid parental leave will once more be an election battleground, Mr Porter has signalled the Coalition will look again at restricting PPL payments if it is re-elected.
Under changes announced last December, the Coalition had planned to tighten up access to PPL from July - so parents with babies due later this year faced losing up to $11,800 in payments. But the government has not been able to get the crossbench support required to pass the change.
"The legislative change that we want to make is not going to be successful in this term of Parliament," Mr Porter told ABC's Radio National on Wednesday.
"People who are pregnant or planning to become pregnant, the status quo is clearly going to be maintained for a period of time."
Currently women are able to access their employer's scheme (if they have one), plus the government's scheme, which pays the minimum wage for 18 weeks.
Under a new policy announced by the Coalition late last year, women who had an employer scheme would only be able to access the government scheme to top them up to 18 weeks.
For example, if their workplace had a 10-week maternity leave scheme, they would only be able to claim 8 weeks of the government's scheme.
The question mark over PPL has been confusing for some families, who were trying to budget for new babies.
On Wednesday, Mr Porter acknowledged that the "certainty issue" was a "live issue" for anyone thinking about having a baby or who was pregnant.
But he said the government remained committed to making changes to paid parental leave in the event the Coalition won the next election - which could be held as early as July 2.
He said the fact that the policy would not be changed in this Parliament, "does not mean that this government at the moment is not trying to change that, or if it were re-elected wouldn't also be looking at ways in which to modify the existing system along the lines that we have suggested".
Mr Porter said there was a "real equity issue" with PPL, where women who earned in the top 20 per cent could still access almost $12,000 in government payments.
According to the Department of Social Services, only 6.3 per cent of government parental leave recipients from July 2014 to March 2015 earned between $100,000 and $150,000. The median income for recipients was $47,730.
Labor spokeswoman for families and payments Jenny Macklin said Mr Porter's comments confirmed that "a vote for the Turnbull Liberals at the next election is a vote for savage cuts to paid parental leave".
"It might seem like small change to Malcolm Turnbull, but to young families it makes all the difference," Ms Macklin said.
"Because of these cuts, thousands of new mums will be forced to choose between returning to work early and missing out on time with their new babies, or staying at home and having their living standards drastically reduced."
Parent advocacy group, The Parenthood said expectant mums and dads had been left in the lurch.
"Today brings good news for those with bubs due in the next few months. But unfortunately, taking time away from parents and their newborns remains Turnbull government policy," executive director Jo Briskey said.
The latest tweak to PPL planning follows years of uncertainty over the policy.
Former prime minister Tony Abbott initially planned to pay women their salary for 26 weeks, before dumping the plan and instead announcing a $1 billion cut to PPL in the 2015 budget. This cut was also not supported by the Senate.
PPL policy changes
Current policy: Women can access their employer scheme and the government's scheme of 18 weeks at the minimum wage if they earn $150,000 or less.
Tony Abbott's "signature" policy circa 2013: Women would have 26 weeks of leave at their wage, up to a threshold of $150,000 a year, plus superannuation. Revised due to budget "emergency".
Abbott's "signature" policy circa 2014: Women would have 26 weeks of leave at their wage, up to a threshold of $100,000 a year, plus superannuation. Dumped due to lack of parliamentary and party support.
Abbott's May 2015 budget policy: Women could not access both the government and an employer scheme. Dumped due to lack of Senate support.
Malcolm Turnbull's December 2015 policy: Women can access their employer scheme and top it up to 18 weeks using the government's scheme. Put on ice due to lack of support.
Turnbull's post-2016 federal election policy: Cuts still planned, but detail unclear, as would depend on Senate make up and negotiations required there.
