NEW mums and dads will be eligible to receive $570 a week in parental leave from January 1 after a historic decision overnight.

The Senate last night brought Australia into line with most of the Western world by passing legislation setting up the nation's first paid parental leave scheme.

The historic decision means eligible parents will be entitled to 18 weeks paid at the federal minimum wage -- currently $569.90 a week, or $15 an hour.

Expectant mums must earn no more than $150,000 a year to qualify and work at least 330 hours in 10 of the 13 months before their due date.

The successful Upper House vote delivered a welcome victory for the Rudd Government, which has weathered heavy recent criticism for a string of policy backdowns.

A delighted Families Minister Jenny Macklin hailed the passage as "a major win for Australian families".

"This government-funded paid parental leave scheme will give thousands of new mothers the financial support to make their own choices about work and family responsibilities when their baby is born," Ms Macklin said.

But the Opposition dismissed the scheme as "not good enough" and pledged to bring in its own 26-week alternative scheme -- paid at a higher rate and financed by a tax on big businesses -- if it's returned to office at the coming election. "The poor-relation scheme offering only 18 weeks of the minimum wage does not go near covering the household expenses of two-income families working hard," said shadow minister for status of women Sharman Stone.

And Family First senator Steve Fielding has defended controversial remarks made yesterday linking the scheme with abortion.

The senator was roundly criticised for suggesting some women may rort the scheme by deliberately falling pregnant and then having a late-term abortion

It is estimated 148,000 Australians will be able to claim the benefit every year.

Families will have the option of signing the benefit over to stay-at-home dads if mothers want to return to work.

Melbourne mum and TV presenter Andi Lew said passing of the legislation was a red-letter day for all parents, even if it comes too late to provide paid leave for her while she cares for son Beaudy. "It's a fantastic breakthrough and wonderful for mums and bubs everywhere," she said.

After welcoming her first baby Courtney on Wednesday, Joanne Sutherland also welcomed news of paid parental leave yesterday.

The scheme comes too late to help Ms Sutherland and partner Robert Dodsley make ends meet after having to quit her job as a veterinary nurse, but she said it would be a huge boost if she had another child.

"It's pretty tough without maternity leave, that's why this coming out on January 1 is so important and will benefit a lot of people," she said. "It is an incentive and takes the weight off you knowing this has been approved."

Originally published as Couples get baby leave