Company directors have become progressively less confident in the Abbott Government since it came to power, a survey says. 

The latest Australian Institute of Company Directors (AICD) survey says about a third of Australian company directors expect the new administration to have a positive impact. 

In the days after the Abbott Government took office, almost 70 per cent of directors felt that way. 

The big drop in confidence has pushed down the proportion of directors who believe the Federal Government understands business - just 48 per cent now believe that it does. 

The survey, covering more than 500 Australian company directors, was conducted before the release of the Commission of Audit and before recent talk of a deficit levy.

Both of these occurrences will have changed the opinion of many directors, some toward and some away from their previous view. 

In the AICD's survey, 60 per cent believed that current personal taxation levels are too high, suggesting many would not be excited about increased tax for high-earners.

Despite the LNP seemingly receiving plenty of guidance from the business community, it turns out the directors surveyed are not as resolute about the need for budget surplus as the Federal Government is.

Over 80 per cent of business leaders said surplus was not a priority within the next three years.

The AICD's chief executive John Colvin says local business leaders have clear concerns about the domestic economy, and are looking for public investment in key infrastructure.

“Directors are more pessimistic about the future health of the Australian economy, with just under half expecting it to be weak over the next 12 months. For the first time in the three-year life of the DSI [Director Sentiment Index], directors expect the US economy to outperform the domestic economy in the next year,” he observed in the report.

“The top five issues that directors believe the Coalition should address in the short term are infrastructure, productivity growth, taxation reform, industrial relations and international competitiveness.”

Unsurprisingly, just 8 per cent back Tony Abbott's paid patrentla leave plan for six months of full income replacement for mothers who earn up to $150,000.

The scheme will likely be funded by a company tax levy on those with turnover above $5 million.

Around 60 per cent of respondents said the scheme, even in the more recently-announced scaled back forms, should not go ahead.