Contributions to Govt's proposed social unemployment insurance scheme likely subject to 15% GST

A tax specialist says the likely GST on contributions to the Government's proposed unemployment scheme, is just a matter of consistency. The scheme will pay New Zealanders who lose their job, 80 per cent of their former income for up to seven months. Official Information Act papers show officials recommend against allowing employees to claim a deduction on the GST paid on levies. National says it's a tax on a tax. But Deloitte's Allan Bullot told Tim Dower if you go and buy private income protection insurance, you'll always pay GST on the premiums. He says here, you have the same concept just being extended out. LISTEN ABOVE  See omnystudio.com/listener for privacy information.