Legislation for Prime Minister Tony Abbott’s prized $5.5 billion paid parental leave scheme has been quietly shelved and is unlikely to be put to Parliament this year, sources have revealed.

The move is aimed at quelling backbench dissent on the issue and is also a recognition it may be voted down by rebel government senators if put to the test.

Paid parental leave bill shelved: The PM's paid parental scheme is unlikely to be put to Parliament this year, sources say. Credit:Geoff Jones

Treasurer Joe Hockey said in June that PPL legislation would be introduced ‘‘soon’’ and described as ‘‘absurd’’ suggestions the policy had been stalled due to internal unrest.

But a government source said the scheme had been placed in the “too-hard basket” because the Coalition was fighting on too many fronts and struggling to get its basic budget measures passed by the Senate.