PM defiant in the face of treachery

Julia Gillard has cast herself as economically responsible as she addressed claims she opposed key welfare reforms, vowing not to be distracted by yet another damaging leak.

The prime minister on Wednesday hit back at allegations she had argued against paid parental leave and a rise in the age pension, calling a morning media conference to neutralise the potential threat to her election prospects.

As Ms Gillard made her case, the man she ousted and who many suspect could be responsible for the leak, former prime minister Kevin Rudd, confirmed his nomination in the Brisbane seat of Griffith.

The allegations, which come after claims Ms Gillard reneged on a leadership deal with Mr Rudd, overshadowed other developments on Wednesday, including a coalition plan to cut the company tax rate.

Inflation figures, which all but ended the chance of an interest rate rise in the middle of the campaign, also took a back seat as the prime minister moved to contain the reported cabinet leak.

"Of course I'm angry that someone would engage in this kind of conduct but I'm not going to be diverted by it," Ms Gillard said.

The prime minister conceded she did question the combined $50 billion cost of the paid parental leave scheme and rise in the age pension but maintains she did so through the eye of a fiscal conservative.

"I looked at them from every angle, I held them up to the light, I examined every possibility, I asked every question, because I wanted to satisfy myself that they were affordable."

But she rejected outright suggestions she did not support the measures, and in particular, denied claims she questioned the rise of the age pension on the grounds that elderly Australians do not vote Labor.

"I joined the Labor Party many years ago because I believe in fairness and decency for Australians, including for older Australians," Ms Gillard said.

"And on the question of paid parental leave, I have devoted my adult life through what I have advocated, through who I am, to the question of equality between men and women in this country."

Opposition Leader Tony Abbott said the leak was systematic of the dysfunction that exists within the government, while also questioning Ms Gillard's defence that she had simply been economically responsible.

"If she was as vigilant questioning these costs, why wasn't she as vigilant questioning the cost of the pink batts program? Or even more so, as vigilant questioning the costs of the school halls program?"

The comments came as Mr Abbott announced the coalition would cut the company tax rate to 28.5 per cent from July 1, 2013, beating Labor's pledge to reduce the rate to 29 per cent.

"We are always going to be the low tax party," Mr Abbott said.

"We will give them a tax cut without a mining tax to pay for it. We'll give them a tax cut without a carbon tax to pay for it. We will ensure that this tax cut is affordable in the longer term."

Mr Abbott said the tax cut was expected to cost $2.1 billion a year.

But the announcement immediately raised questions over whether it would force changes to the coalition's paid parental leave scheme after opposition treasury spokesman Joe Hockey commented that there would be "more to say" about the paid parental plan in the coming days.

"We will be formally launching, or relaunching if you like, our paid parental leave policy later in the campaign," Mr Hockey said.

The coalition has pledged to impose a 1.7 per cent levy on the nation's richest 3200 companies to fund its paid parental plan.

Treasurer Wayne Swan described the announcement as a con job.

"(Mr Abbott) is trying to con the Australian people because what he doesn't mention is that he is going to increase the company tax rate by 1.7 per cent at the same time," Mr Swan said.