Businesses Give Thumbs Down to Proposed Income Protection Scheme


A report by the Auckland Business Chamber appears to show that 78% of those who took part in a survey it carried out are opposed to the government’s proposed Income Insurance scheme.

The scheme, which has been delayed to 2024, would provide workers without a job, due to sickness or redundancy, with 80% of their wages or salary for six months. Funding the scheme would come from additional taxes of 1.39% on employers and employees.

Former National Party leader and Chamber CEO, Simon Bridges, says “…if the government claims to be listening, it should back-off”.

RiskinfoNZ has previously reported on the Income Insurance proposal when Financial Advice NZ CEO Katrina Shanks said some in the insurance sector are concerned the scheme will be compulsory, with no opt-in/opt-out option.

Grant Robertson, the government’s Finance Minister, estimates the scheme would cost $60 million to implement.

A RiskinfoNZ poll carried out in May showed 80% of respondents did not support the scheme.

See our report: Income Insurance Scheme Delayed Until 2024