Removing FBT on insurance would cut premiums, FSC says

The Financial Services Council (FSC) is continuing to call for changes to Fringe Benefit Tax (FBT) rules to make health and life insurance more accessible to New Zealand workers.

It wants the government to exempt employer-provided health and life insurance from FBT, arguing the current tax setting discourages businesses from offering cover as part of employee benefits packages.

FSC chief executive Kirk Hope says removing the tax would be a win-win.

"Our argument is - remove fringe benefit tax for employer group schemes, because what we know is that more employers would offer them. That would actually reduce the price of premiums, because you're expanding the market. That would make health insurance more affordable and more accessible," Hope told RNZ's The Panel.