Date posted: 08/02/2023

Taking income insurance scheme off the table is the right decision

“From the outset, the scheme has lacked detail and robust modelling and has been too rushed, and was being proposed just when Kiwis are facing severe economic headwinds,” said CA ANZ NZ Country Head Peter Vial FCA. 

“Chartered accountants have had major concerns about the proposed timeframes, the cost, its impact on low-income families and small businesses, possible wage suppression effects, and the potential for gaming the system.” 

“There are benefits in having a scheme that enables workers to find the most suitable and productive employment after becoming unemployed, rather than being under pressure to take the first, less suitable job they can get. But those benefits would need to come at a manageable cost that is fair to both employers and employees". 

“The Government must ensure that any future proposal in this area is as fair and efficient as possible, and economically viable. It must also be careful that any future proposal does not act as a disincentive for people to go back to work or place an unfair or unaffordable burden on employers or employees.” 

“We encourage the Government to come back next time with a stronger plan for engagement and co-design,” concluded Mr Vial. 


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