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The paper has been released by the Productivity Commission in the lead-up to its inquiry into a paid maternity scheme.
It says the impact on business will depend on how the scheme would be funded, but ultimately any contribution from employers would probably be passed on to consumers and workers.
It says while there would be adverse effects for some businesses, companies could benefit through improved staff morale, greater productivity and better staff retention.
It says the design of any scheme should take into account that the modern family takes many forms, with the care of children now often involving adoptive parents, grandparents, siblings and partners in same-sex couples.
Source: By Australian Broadcasting Corporation