How do we know the intended outcomes of this new tax will be achieved? From looking overseas there is real risk that, in a market with plenty of job openings, those that receive the insurance could simply use the funds to take time off.
Is it possible that the existence of this policy will make redundancies more likely and increase in number?
It is a fallacy that workers, particularly those that have been in a particular specialisation for many years, can simply "retrain" – particularly if there is a time cap on the insurance.
Why should this fund, intended to address a particular issue, be accessible in a general way in times of emergency?
As you can gather, I am not in favour of this new tax. And I am especially concerned for its impact on small businesses, which are already being bashed from pillar to post by restrictions to manage the now mild Greek-lettered virus. And, in keeping with the strange times we live in, I even agree with the Green Party criticism that the scheme could create a two-tier welfare system. It also might have loopholes that could be exploited.
In keeping with the topic of taxes, and noting the pervasive impact of oil and petrol prices on individual and business bank accounts (and inflation), the Government would be better to turn its attention to the fuel taxes and reduce them. I would say "before it gets out of hand", but those days have long since passed.
If one of your core policy pillars is to reduce poverty, losing control of inflation (and particularly the cost of moving people and goods) is only going to exacerbate hardship as, again, this tax is simply passed down the chain to the consumer.
The only way to directly avoid these costs is to purchase an EV or hybrid and they are expensive (also, last time I looked we are still waiting for electric utes and trucks).
There is no escaping the cost of fuel unless you are in the top 5 per cent of wealth and are able to afford a decent electric vehicle (or you are of the strongest of constitutions that you are not embarrassed to drive a Nissan Leaf). And even then, as a friend of mine has recently found out, the technology, while snazzy and cool, is still in its infancy and subject to potential (and costly) failure.
Some will point to the EV rebate, but that works only if you want an around-town vehicle with limited range; for businesses, vehicle range is crucial and those vehicles with decent range exceed the value limit applied to the rebate.
So instead of introducing new taxes that might bring spurious overall value to the nation, perhaps the Government should take the pressure off individuals and businesses by reducing or eliminating the existing ones that do more harm than good?
