The Government has agreed to the final regulations for the levy on insurance contracts that will fund Fire and Emergency New Zealand from July 2026.
Earlier this year, the Government agreed to a 2.2% increase to the rate of levy.
“Fire and Emergency publicly consulted on an increase of 5.2% earlier in the year, however this was revised down as I was not convinced that such an increase is justified and requested an alternative solution from Fire and Emergency,” said Minister of Internal Affairs, Brooke van Velden.
The Fire and Emergency levy is included on most insurance contracts that cover property, including vehicles, homes and contents, and non-residential property.
“The insurance industry has requested that the regulations be finalised 18 months before coming into effect to give sufficient time to implement the new levy. I am pleased that the Government has approved the regulations this month, providing confidence to businesses about how the levy will be applied and collected,” said the Minister.
“In deciding the rate of levy and how it applies to each type of property, the cost of living for New Zealanders was top of my mind, as well as ensuring Fire and Emergency is sufficiently resourced to continue delivering its services.
“I have also asked FENZ to deliver savings of $60 million by the end of the three-year levy period. These savings will provide a reserve for significant unexpected costs or under-collection of the levy.”
The maximum annual levy on residential property (homeowners) will drop from $119.50 to $107.40. The maximum annual levy on personal property (contents insurance) will drop from $23.90 to $21.48. Vehicle insurance (including third-party only) will have a flat fee of $25, down from $40.12 consulted on by Fire and Emergency.
The summary of submissions from public consultation is available at: Public-Consultation-Outcome-Levy-consultation-2024.pdf
