About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Monday, May 29th, 10:20AM
rss
Latest Headlines

Tax incentives promoted

Friday, March 30th 2001, 8:09AM

by Philip Macalister

The Health Funds Association says the introduction of tax incentives for private health insurance would help bolster the public health service in New Zealand.

A report, written by the New Zealand Institute of Economic Research for the association, concludes that tax incentives would pass the national welfare cost-benefit test. It argues that under such a scheme more would be invested in the health sector, than the money forgone in tax revenue.

It also says the incentives could target lower income households.

NZIER's Alex Sundakov says two things came out of the research once it started. The first is that tax incentives where a better option for promoting the uptake of private health insurance, as opposed to changing the fringe benefit tax treatment of premiums.

This is because not everybody is in the work force.

Secondly the issue was as much about health policy, as it is about tax policy.

The idea of incentives has received muted response from politicians.

Tax incentives for health insurance aren't on the government's work schedule, nor is it doing any work on the subject, a spokesperson for Finance Minister Michael Cullen says.

National's former health and revenue minister Wyatt Creech says National is doing a complete review of its policies.

He says the report provides a "serious intellectual base" for the party to use in its policy making.

If tax incentives for health insurance provide a "net public benefit, then it's worth looking at," he says.

Labour's coalition partner, The Alliance, has a totally different position.

List MP Philidda Bunkle says the party is totally opposed tax incentive for private health insurance.

She argues under such a regime the public health system gets run down and the cost for health is carried more heavily by the lower socio-economic groups than higher ones.

HFA executive director Andrea Pettett is realistic about the political reaction: "Achieving tax reform isn't going to happen overnight, and it won't," she says.

This is the association's first piece of major work and it will continue pursuing the subject, she says.

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« Health insurers may be forced out of businessHellaby backs Club Life »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Strategy Thoughts
News Bites
Latest Comments
  • InvestNow mix-up disappointing: Stubbs
    “Bobby is right. Simplicity is a reporting entity for AML/CFT. They can rely on a third party for CDD/EDD etc, but they need...”
    27 minutes ago by Barry Read
  • InvestNow mix-up disappointing: Stubbs
    “No Murray. Simplicity need to know where the money is coming from. The rules don't say they can just make an assumption....”
    1 day ago by Bobby
  • Insurers want tweaks to client-first duty
    “Curious to see Partners Life seeking a tightening of replacement rules after seeding its business with business rolled from...”
    3 days ago by paulgogol
  • InvestNow mix-up disappointing: Stubbs
    “I heard Simplicity's recent wealth innovation tour and excited about it. What are the timeline to reduce the minimum investment...”
    3 days ago by ramanan3012
  • InvestNow mix-up disappointing: Stubbs
    “@bobby I think you have got the wrong end of the stick. The issue isn't AML as you think and suggest. Rather more likely...”
    3 days ago by Murray Weatherston
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com