Australia and New Zealand Banking Group Limited (ASX: ANZ) announced it will pay primary-caregivers a $4,000 childcare allowance as part of new measures to "attract and retain talented women."

The childcare allowance comes alongside superannuation on all forms of paid parental leave, Melbourne-based ANZ said in a statement on Wednesday.

ANZ in Australia offers 12 weeks paid parental leave at full pay with no qualifying period. It will extend its top-up parental leave payment in New Zealand from 12 to 14 weeks.

ANZ chief executive Mike Smith said "The 2010 EOWA Census results show that Australian companies are making little progress in improving the representation of women in senior executive roles and on boards."

"Clearly there's a need for a new way forward."

"One issue is to address the reality of what happens to women in business when they take time off to have children. We need to stop penalising mothers."

ANZ's approach aims to promote top-tier talent returning to work after taking paid parental leave and increase the representation of women in senior management positions.

"The measures we've announced are intended to have an immediate impact on our ability to retain talented women and over time help increase the number of senior women at ANZ," Mr Smith said.

However, SME leaders say more should be done to help smaller businesses match the offer.

Council of Small Business of Australia chief executive Peter Strong said ANZ made a good move, but he is worried SMEs will not get the same support from government.

"Of course the majority of SMEs are good people and want to help but they won't issue any benefits if it's going to cost them too much money," Mr Strong said.