Taking Income Insurance Off The Table Is The Right Decision

“From the outset, the scheme has lacked detail, robust modelling and has been too rushed, and comes at a time when Kiwis are facing severe economic headwinds.”

“Chartered accountants have had major concerns about the proposed timeframes, the cost, the 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.”

About Chartered Accountants Australia and New Zealand

Chartered Accountants Australia and New Zealand represents more than 135,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.

www.charteredaccountantsanz.com

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