Parents will receive 18 weeks' taxpayer-funded maternity under measures announced in tonight's Federal Budget.
But the scheme will not be introduced until January 2011 - after the next election.
Under the new scheme, the primary carer of a newborn baby will receive the minimum wage - $544 a week - to stay home for 18 weeks.
Budget 2009: summary The Government will means test the scheme, paying it only to a parent who earns less than $150,000 a year.
Those parents must also have worked at least one day a week in the 10 months leading up to their child's birth. Eligible parents will not be paid the $5000 baby bonus or family tax payments.
Close to 150,000 new mums and dads will be eligible for the leave.
The maternity leave measure recognises Australia has one of the lowest rates of female participation in the workforce among countries in the Organisation for Economic Co-operation and Development.
Sex Discrimination Commissioner Elizabeth Broderick has described the scheme as a "major triumph".
The Productivity Commission had recommended an 18-week scheme with no means test, continuing super contributions and two extra weeks for fathers at a cost of $450 million a year.
But the Government reduced the estimated annual cost to $260 million by scrapping the paternity leave and super contributions recommendations.
For full coverage and analysis see Wednesday's Mercury. 
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