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JULIA Gillard's campaign is bracing for more embarrassing claims and Cabinet leaks in the wake of Labor's destabilising leadership change.
Senior Labor sources have pointed the finger at ousted former Labor leader Kevin Rudd, and are concerned he has moved from denial to revenge.
Channel 9 last night reported that Ms Gillard opposed Labor's paid parental leave scheme when it was discussed in Cabinet.
Ms Gillard was then deputy prime minister and reportedly argued the idea that the baby leave scheme would be a political winner was misconstrued.
Government sources also said that when Cabinet discussed last year's pension boost worth $14 billion she questioned the price tag, saying elderly voters didn't support Labor, Nine said.
The report sent shockwaves through senior Labor ranks last night, with concerns expressed that Mr Rudd might be exacting revenge on those who cut him down. Cabinet deliberations are confidential.
A senior Government source told The Courier-Mail they believed Mr Rudd had moved from a stage of denial to revenge and they were fearful of what he might do.
Mr Rudd's spokesman said last night: ''Mr Rudd has not made, nor will he make, comment on Cabinet processes or deliberations.''
Ms Gillard said in a statement: ''I was very proud to be a member of the Labor team that delivered these two historic achievements, delivering a better deal for pensioners and supporting parents to spend more time with their babies.
''Pensioners and families deserve more support, and this government has acted to give them that support.''
She said she would not respond to anonymous allegations, saying: ''If the Liberal Party have allegations to make, they should put their names to them.''
The Nine report came on the same day Mr Rudd publicly backed Ms Gillard by name, despite failing to join her on the campaign trail in his south Brisbane electorate of Griffith.
He refused to say whether he would attend the official Labor campaign launch next month, but threw his support behind his former deputy.
''As I've said repeatedly since the change in the leadership, I fully support the re-election of the Government, and I fully support the election of Prime Minister Gillard,'' Mr Rudd said.
It is understood all sitting Queensland Labor MPs have re-nominated to contest their seats, including Mr Rudd.
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