Make your own wrapping paper
Buy some suitable plain paper from a local supplier. Usually known a 'Butcher's Paper', it's the thick white paper (or brown paper) that you can get in large rolls or large sheets. You can buy it from office suppliers, like Officeworks, packaging suppliers (google your local wholesaler) or some toy shops.
Get some colourful paints - if it's for Christmas paper, use Christmas themed colours like red, green and even gold and silver.
Then you're ready to paint!
For littlies, finger paint and hand prints work best. Put the paint into a flat tray so they can get a good even coverage on their hands. Make sure you've got an old cloth handy so you can wipe their hands quickly before they set-off handprinting everything in site! Perhaps a good activity for outside!
You can also cut out 'stamps' from potatoes or buy stamps from a craft shop.