The federal government's decision to scrap the Paid Parental Leave (PPL) scheme has been met with a mixed response from Stepping Stones Childcare Centre.
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During his address to the National Press Club on Monday Prime Minister Tony Abbott said he was dumping his $20 billion PPL scheme which included full salary and superannuation for new mothers for up to six months, capped at $100,000.
Instead, Mr Abbott said he would develop a "families package".
"We sought the advice of the Productivity Commission and I have listened to the feedback from my colleagues and from mums and dads around Australia and they have said that, with our current budget constraints, the better focus now is on childcare if we want higher participation and a stronger economy," Mr Abbott said.
He said he would be consulting widely on a way to improve the system of multiple payments, keep costs down and put more money into parents' pockets.
The details of the families package will be established in the lead-up to the budget in May.
Stepping Stones director Jena Glover said whether it was a good or bad move was going to depend on what was put in the families package.
"Anything they can do to help parents afford childcare is a bonus. It's a whopping chunk of, in my case, my fortnightly pay," Ms Glover said.
She said the money from the rejected scheme needed to go somewhere and she supported anything that made it easier and more affordable for parents to leave their children in childcare.
However, Ms Glover said the PPL would have allowed parents to stay at home for longer.
"The Paid Parental Leave Scheme helps parents to have time off with their kids and I think that's great," she said.
"If you don't have leave accrued at best you get three or four months off."
The current PPL provides 18 weeks of financial support at minimum wage - $641.05 a week.
Ms Glover said now that the scheme has been scrapped she expects the number of babies at the childcare centre to rise.
"We take kids from six weeks old and we're happy to take them then but they're still only a baby."
Ms Glover said she would welcome changes to the childcare rebate to make it easier for parents to understand and to make sure it goes towards childcare fees.
She said at the moment the rebate can be paid either to the parent or to the childcare centres.
"There really needs to be something put in place where if their payment isn't up to date it should get paid directly to the service."