No Support For Income Insurance Scheme As Is

The EMA says it will not support the NZ Income Insurance Scheme proposal as announced by the Government today.

Chief Executive Brett O’Riley says the NZIIS, which would be funded by levies - or a new tax - paid equally by employers and employees, like ACC, was originally intended to be cost neutral for business.

"No one would argue that better skills-matching in the workplace, career advice and enabling displaced workers to get back in the workforce quickly were good things, particularly after the experience through COVID-19. But our involvement in the development of this was on the proviso that it was cost neutral and would be balanced by reducing liabilities for business elsewhere."

"There has clearly been scope creep with this proposal, which was developed in the Future of Work Forum."

He says people need to remember that ACC was introduced in 1974 and has taken more than 40 years to stabilise, as things vary from year-to-year, making budgeting difficult.

Mr O’Riley says the inclusion of health and disability, which was originally out of scope, means a higher amount would be paid by business for a longer duration, so it essentially amounts to a further tax on business.

"We understand that health includes mental health, stress and fatigue, but these are very subjective conditions with both work and non-work components," he says.

"We will make our thoughts known to the working group, and our members, on the NZIIS during the consultation process to April 26."

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