If elected, Mr Abbott would impose a new levy on large companies to fund the 26-week paid parental leave scheme, which was described as an ''interesting idea'' by Families Australia.

Mr Abbott said, ''It's got to be for six months and it's got to be at people's real salary and the beauty of the Coalition's scheme compared to the Mickey Mouse scheme which the Labor Party has introduced is that our scheme gives parents, particularly mothers, it gives them real time and real money.''

The Government's scheme due to start on January 1, 2010 would be taxpayer-funded and deliver 18 weeks' paid parental leave. The parent would receive the federal minimum wage, which was currently $543.78 a week. It would cost $260million annually.

The Opposition would generate up to $2.7 billion annually by imposing a 1.7 per cent levy on 3200 large companies to pay for their scheme, due to start in the ''first term''. A working parent earning up to $150,000 would be eligible for six months' leave and be paid their standard salary.

The Business Council of Australia, Australian Industry Group and Australian Chamber of Commerce and Industry condemned Mr Abbott's plan.

Chamber chief executive Peter Anderson said business should not foot the bill for ''social policy''.

''The idea of taxing industry to pay for social policy is a mistake. It is wrong and it is also unfair,'' Mr Anderson said.

For more on this story, see the print edition of today's Canberra Times.