The NZIER report also provides a framework brokers can use with employer clients regardless of whether legislation changes. NZIER estimates the annual costs of absenteeism, presenteeism, and staff turnover at between $9,281 and $14,081 per employee, based on an average gross annual salary of $90,688 in the September 2025 quarter and an average absenteeism rate of 6.7 days per year. That per-employee figure makes the productivity case for group cover in terms CFOs recognise. The proposal has, however, faced documented resistance. Treasury and Inland Revenue have previously advised against changes to FBT rates related to private health insurance, with Inland Revenue citing risks to the integrity of the personal income tax base. Budget 2026’s FBT changes addressed motor vehicle rules – health and life insurance premiums were not included.
