A survey shows company directors have become much less confident in the Abbott Government since it was first elected.

Back in the second half of 2013, just after the Abbott Government took office, almost 70 per cent of company directors expected the new administration to have a positive impact on their business decision making.

In the latest Australian Institute of Company Directors (AICD) survey, this figure has slumped to just 30 per cent.

This loss of confidence has also translated into a fall in the proportion of directors who believe the Federal Government understands business - from 55 per cent last year to 48 per cent now.

The index of overall director sentiment is down 6.9 points on the previous survey, but remains slightly higher than this time last year when the Gillard government was in its final months.

"The results suggest the honeymoon period for the Coalition has ended," concluded the AICD's chief executive John Colvin.

The survey of more than 500 company directors was conducted between March 31 and April 13, before the release of the Commission of Audit, and also before speculation about the introduction of a deficit levy - a proposal that has been criticised by many prominent members of the business community, although backed by some.

Certainly, the AICD's survey would indicate that most of its members would resent the possible levy on high income earners, with 60 per cent believing that current personal taxation levels are too high.

Perhaps surprisingly, business leaders generally do not place much importance on achieving a budget surplus in the short term, with over 80 per cent saying it is not a priority within the next three years.

Rather, Mr Colvin says Australian business leaders are worried about the domestic economy, and want to see public investment in key infrastructure.

"Directors are more pessimistic about the future health of the Australian economy, with just under half expecting it to be weak over the next 12 months. For the first time in the three-year life of the DSI [Director Sentiment Index], directors expect the US economy to outperform the domestic economy in the next year," he observed in the report.

"The top five issues that directors believe the Coalition should address in the short term are infrastructure, productivity growth, taxation reform, industrial relations and international competitiveness."

One area that directors generally do not want more investment in is paid parental leave - only 8 per cent backed Tony Abbott's original plan to provide six months of full income replacement for women earning up to $150,000.

Almost 60 per cent believe the scheme, even if scaled back, should be deferred or abandoned, with 40 per cent favouring ditching it altogether.

The scheme is to be partially funded by a 1.5 per cent company tax levy on firms with turnover above $5 million.