The Prime Minister has been forced to back down on some of his budget priorities.

Overnight, the so-called Government razor gang took the kives to the PM’s signature paid parent leave scheme.

And there could be more changes in the wind before the May 13 Budget.

Elizabeth Glasson reports.


The PM’s signature parental parental leave promise has been slashed, amid internal coalition opposition.

The Government expenditure review committee pared the salary cap by one-third to $100,000.

That drops the maximum payout for the 26 week leave, from $75,000 to $50.

Tony Abbott says, it’s fairer.

Prime Minister, Tony Abbott: “I don’t want any section of the community to feel they are getting any special privileges.”

But he wouldn’t be drawn on speculation the temporary deficit tax is also about to be scrapped, replaced by a one per cent increase in the marginal income tax rate.

Prime Minister, Tony Abbott: “I just want to assure you that we will fix the problem and we will do it in ways that are fair.”

But it’s still going to be a hard-sell to the public.

Vox 1 : “Why should we? why should we pay more in tax?”

And disability supporters aren’t happy they could be getting less.

At the National Disability Insurance Agency launch in Geelong today, Mr Abbott used good old spin.

Prime Minister, Tony Abbott: “It’s not just a new policy, it’s a new way of living.”

But the May Budget could reveal funding for the insurance has been pushed back by up to five years.

Submissions on proposed changes to the racial discrimination act, close today.

It too, could become another watered down promise.

Elizabeth Glasson, QUT News.