Govt proposes 3% tax increase

Newshub reports:

The Government’s proposed income insurance scheme would see workers made redundant, laid off or who have to stop working because of a health condition or disability, receive 80 percent of their usual salary for up to seven months.

It would include a four-week notice period and four-week payment, paid at 80 percent of salary, from employers. The worker would then get a further six months of financial support from the scheme, including support for training, also at 80 percent of salary.

However, the maximum payment would be capped at 80 percent of $130,911, in line with the maximum leviable income that ACC has in place.

To pay for it, the Government is proposing an ACC-style fund that both workers and employers would contribute to, paying about 1.39 percent each into the scheme. It would be administered by the Accident Compensation Corporation (ACC). 

This is a terrible policy.

Every working New Zealander will have their take home pay drop (at a time when inflation is rocketing) to fund this scheme which could see someone who loses their job paid $60,000 to stay home and do nothing for half a year.

People will get paid up to $400 a day to not look for a job.