April 16, 2008
MEDIA RELEASE – FOR IMMEDIATE USE
Health industry supports call to scrap FBT
The health industry says 250,000 more New Zealanders could benefit from health insurance cover if a Government advisory
group’s recommendation to abolish fringe benefit tax (FBT) is adopted.
Health Funds Association of New Zealand (HFANZ) executive director Roger Styles said today FBT was a “significant
barrier” to greater numbers of employers providing employee benefits, such as workplace health insurance schemes.
He was commenting after the release yesterday of a report by the Government’s Small Business Advisory Group, which made
16 recommendations including abolishing fringe benefit tax. Minister for Small Business Clayton Cosgrove said he would
give a considered response once the report had been fully analysed.
Mr Styles said since FBT had been in place, the number of employees covered by workplace-based health insurance had
significantly reduced.
“With the public health system unable to cope with escalating elective surgery need, such a boost in employee health
cover would be timely,” he said.
“An extra 250,000 employees covered translates to up to 20,000 elective surgical discharges a year being insurance
funded.”
Mr Styles said currently an estimated $116 million was saved from the public health budget annually as a result of
workplace-based health insurance. About $275 million is spent each year on group health insurance schemes, providing
coverage for around 620,000 people.
ENDS.