Prime Minister Tony Abbott ’s decision to dump his signature paid parental leave scheme opens the way for the ­government to implement major ­childcare changes laid out by the ­Productivity Commission that would simplify the system but possibly cut benefits for wealthier families.

The 2014 report recommended the ­$5.5 billion originally earmarked for Mr Abbott’s scheme be used for ­childcare subsidies, and the complex system of multiple payments be merged into a single, means-tested payment that could be used to pay nannies.