HomeInsurance & Mortgages NewsMajority of New Zealanders oppose unemployment insurance!

Majority of New Zealanders oppose unemployment insurance!

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Wellington (Commonwealth Union)_ According to a study by the New Zealand Taxpayers’ Union (NZTU), three out of five New Zealanders are against the government’s proposal for an unemployment insurance plan. The results of the survey conducted by the NZTU reported that 60% of respondents were against the idea, which is an increase of eighteen percentage points from the results of a survey conducted by the same organization in December 2021. On the other hand, thirty-five percent of respondents were in favor of the plan.

The plan, also referred to as the New Zealand Income Insurance Scheme (NZIIS), intends to give a person 80% of their income for up to seven months if they are laid off, made redundant or unable to work due to a health condition or disability. It will be overseen by the ACC and will be supported by contributions from both businesses and employees.

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“The significant opposition to the income insurance proposal demonstrates that New Zealanders can see this ‘levy’ for what it is: a new tax. One that will cost someone working full time on the median salary over $800 a year. This flies in the face of Labour’s election commitment to impose no new taxes,” NZTU campaign manager Callum Purves said.  He added that as New Zealanders understand more about this plan, their opposition to it is growing. It will only create a perverse incentive for certain individuals to take a six-month vacation on 80% of their salaries while wreaking havoc on the employment market. Moreover, hardworking New Zealanders and companies will have to pay billions for this privilege. The government claims to be concerned about the cost-of-living issues faced by New Zealanders. It may begin by abandoning these ideas for a new jobs tax that would

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