New Zealand's largest health insurer is supporting a proposed tax change to make policy cover cheaper.

Southern Cross Health Society chief executive Peter Tynan backs cuts in fringe benefit tax on employer-paid schemes and for people aged 65 and over, saying the benefits would be significant.

Businesses have been crying out against another fringe benefit tax change - this time imposing a cost on perks - which one organisation claims could increase carparking by 50 per cent.

In an unusual coincidence, two MPs want fringe benefit tax changes: NZ First MP Andrew Williams has a proposed bill requesting the removal of fringe benefit tax on employer-paid health insurance premiums and cutting rates for those aged 65-plus, while Revenue Minister Peter Dunne wants employee carparks mainly in Auckland and Wellington to be recognised as income and taxed accordingly.


Tynan said Williams' bill would encourage more employers to provide benefits to their employees, reduce the strain on the public health sector and align tax treatment of health insurance premiums with the tax treatment of ACC levies.