Universal basic income 'is worth considering' - economist


Labour is considering a $211 a week universal income which would replace many welfare payments.

A Labour discussion paper says it would reduce the stigma from being on welfare while also encouraging entrepreneurship. It would also create a more efficient tax and welfare system, but there were concerns it might not be enough for disadvantaged people and they would need more support.

Listen to Labour's Grant Robertson discussing the idea with Duncan Garner:

The payments would add up to about $11,000 a year if the $211 a week amount option is adopted. One variation of this model mentioned in the discussion paper involves replacing New Zealand's progressive tax structure with a flat tax rate of 30%.

Another option of introducing a $22,000+ a year universal income, which would completely replace New Zealand's welfare state, was being considered.

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source: data archive