CAIRNS business leaders have urged Federal Opposition Leader Tony Abbott to go back to the drawing board with his controversial maternity leave scheme.

Mr Abbott opened a new and unexpected political front this week, proposing six-months’ maternity leave at full pay, capped at $75,000 a half-year.

This scheme would be funded by a levy on large and medium-sized business, with a 1.7 per cent levy on companies’ taxable income above $5 million a year.

The proposal came as the Rudd Government is preparing to introduce its own maternity leave Bill in the Federal Parliament.

Under the Government’s plan, a mum could get paid parental leave at the level of the federal minimum wage (currently $544 a week) for 18 weeks.

Cairns Chamber of Commerce president Jeremy Blockey said the Opposition’s scheme, by comparison, looked "overly generous".

"I would have thought a more palatable solution would be some sort of capped payment at two thirds of the person’s full-time pay, or the minimum Centrelink payment, whichever is the greater," he said.

"I don’t believe anyone proposing to have a child would expect full pay for six months particularly those at the higher pay levels up to $150,000."

Mr Blockey said Mr Abbott’s plan could see a large company underwriting a smaller competitor who could have been employing the same person.

Business owner and former Chamber of Commerce and Industry Queensland president Beatrice Booth said she was "very positive" about the Abbott plan, but said the costs should not be lumped on business.

Udo Jattke, owner of the large Glencorp company, said he was concerned a levy would distort the market.

"Money should be directed for pregnancy leave because it’s important for our future," he said.

"But a 1.7 per cent levy is a lot to pay and has the potential to put a business at a big disadvantage against a smaller competitor.

"I would have thought it would be better to make the levy figure about 0.5 per cent and make it across the board."

CEC boss Roy Lavis said he hadn’t followed the debate, but it was fair larger businesses shared the
responsibility.

Teacher Sophie Stojic, who just gave birth to baby Danika, said the Abbott plan would be welcomed by mums.

"As a teacher I can get 28-weeks leave at half-pay which is good," she said. "But I’m sure this would be popular with some friends and others I know."

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