Business divide over Abbott plan

Martika Ward with daughter Camira, 3, welcomes Tony Abbott’s idea of six-month maternity leave, but is concerned how it will be paid for. Photo: Claudia Baxter MA0910BZ

TONY Abbott’s maternity leave policy has been labelled nonsensical and economically damaging by Springfield Chamber of Commerce president Brian Hooper.

The Federal Opposition leader unveiled a dramatic overhaul of LNP policy on Monday, revealing he would pay new parents the equivalent of their salaries, up to $150,000, for six months.

He estimated his plan to charge a 1.7 per cent levy on businesses earning more than $5 million a year would raise $2.7 billion a year.

The Coalition policy compares with Labor’s soon-to-be-introduced policy, which offers 18-weeks paid leave at the minimum wage.

Mr Hooper said the local economy was still recovering from the global financial crisis and it was far too soon to be placing added tax on to big business.

“Even Springfield Land Corporation is recovering from the economic downturn, and to place added tax on them and this region’s other big business would be damaging,” Mr Hooper said.

“It is too soon and there’s too many industries struggling.

“Abbott should allow major industries to fully recover before he tries to increase tax.

“He’s just trying to gain some cheap votes and become more popular.”

But Ipswich mothers are supportive of the plan.

Mother of one Martika Ward is six-and-a-half months pregnant and she said she would welcome Mr Abbott’s policy.

“I think it’s a good idea, but there is not a lot of detail out about it yet,” she said.

Ms Ward said she had begun to study beauty therapy at Bremer TAFE so she could earn a living while caring for her new child.

“I want to set up my own beauty therapy business at home,” she said.

Ipswich Chamber of Commerce president Michael List backed Mr Abbott’s plans and said they were not too dissimilar from Labor’s.

“Business need to support staff and the Opposition’s plans focus on supporting staff which ultimately creates a good working space,” Mr List said.

“However the government should remove payroll tax because it damages business.

“If they removed payroll tax, a maternity leave tax would be fine.”

Labor Finance Minister Lindsay Tanner warned Abbott’s policy could destabilise the economy.

“Were it to be introduced, it would be a major distortion into the business taxation system,” he said.